Thailand’s central bank kept its record-low benchmark interest rate unchanged as the worsening Covid-19 pandemic clouds the country’s economic outlook.
The Bank of Thailand said Wednesday that its policy committee voted to keep its one-day repurchase rate at 0.50%. All seven economists polled by The Wall Street Journal expected the central bank to stand pat.
Economists say the rate will likely be kept low for a long time because the benchmark is already close to zero and a recovery in consumption and tourism is likely to be slow as the Covid-19 situation has worsened in recent weeks.
The consumer-price index in June rose 1.25% from a year earlier, compared with the central bank’s inflation target of 1%-3%. First-quarter gross domestic product fell 2.6% from a year earlier, following a 4.2% drop in the previous quarter.