The Monetary Policy Committee today decided to maintain the policy rate, taking into account the assessment of the impact of the political crisis on the economy and inflation.
The rate has stayed at 1.25 per cent since May 2009.
Bank of Thailand Assistant Governor Paibul Kittisrikangwan said the MPC acknowledged that the escalation of political uncertainly will largely affect the confidence in tourism, consumption and investment. The central bank on April 29 will review the economic growth forecast, taking into account the political impact.
DBS Vickers Securities (Thailand) said the 25 basis point hike looks more likely in the next meeting in June, on the back of continued export growth.
"Should exports maintain their recent strength in March and in the months to come (which is our baseline assumption), the central bank may have little choice but lift rates from current ultra-low levels," the house said in its research.
