BANGKOK, June 18 (AFP) : Thailand's central bank held its key interest rate Wednesday, in its first monetary policy decision since the army toppled a civilian government whose spending plans were hamstrung by months of political turmoil.
The Bank of Thailand kept its policy rate at 2.00 per cent, a level set in March in an effort to boost a flagging economy which shrank 2.1 per cent quarter-on-quarter in the first three months of 2014.
The move comes as Thailand tries to stave off recession after months of economic gloom caused by a political crisis which chilled government spending, weakened business confidence and frightened off tourists. Thailand's army seized power from the elected government on May 22, pledging to galvanise the kingdom's stuttering economy.
"Following a significant reduction of political uncertainties, the economy should benefit from improving public and private spending... and a resumption of functioning public policy," Paiboon Kittisrikangwan, of the bank's Monetary Policy Committee, said in a statement.
"The economic recovery should pick up pace," he added.
But he warned risks remained from sagging tourist arrivals and inflationary pressures.
To kick-start the economy, the junta has pledged support for small and mid-sized firms, as well as tax reform and the creation of special economic zones on the country's borders.
Thailand holds interest rate after army takeover
FE Team | Published: June 19, 2014 00:00:00 | Updated: November 30, 2026 06:01:00
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