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Thai interest rate unchanged amid recovery doubts

Thai interest rate unchanged amid recovery doubts

Thailand's central bank left its key interest rate unchanged Wednesday, warning that a world economic recovery was still highly uncertain even though the country emerged from recession last quarter.
The bank held its benchmark interest rate at 1.25 percent for a third straight policy meeting.
Some industrialized and developing economies showed signs of improvement in the second quarter by contracting at a slower pace, but low interest rates are still needed to support a recovery in Thailand, the bank said.
"There is still a high degree of uncertainty about the sustainability of global economic recovery," Assistant Governor Paiboon Kittisrikangwan said in a statement.
The rate decision came after Thailand's export-dependent economy expanded in the second quarter from the first, technically climbing out of recession even as activity remained lower than a year earlier.
Thailand's central bank cut the rate a total of 2.5 percentage points between December and April as the credit crunch morphed into a worldwide recession. It was left unchanged at the three policy interest rate reviews since April.


Updated : 2021-04-17 14:39 GMT+08:00