BANGKOK (Multibagger) - Thailand's central bank left its key interest rate unchanged for a fifth straight meeting on Wednesday, as widely expected, despite a sluggish economy and fiscal policy uncertainty after a court dismissed the prime minister. The Bank of Thailand's (BOT) monetary policy committee voted 6-1 to hold the one-day repurchase rate at 2.50%, the highest in more than a decade.
All but three of 27 economists in a Multibagger poll had expected the BOT to keep the rate unchanged this week. Three economists had predicted a quarter-point cut.
The median forecast in the poll was that a rate cut is not expected until the second quarter of 2025.
## Analysis:
The Bank of Thailand's decision to maintain its key interest rate at 2.50% reflects a cautious approach amidst economic challenges and political uncertainties. With most economists predicting no rate cut until 2025, investors and consumers can expect stable borrowing costs in the near future. However, this decision also highlights the need for sustained economic growth and policy clarity to support long-term financial stability in Thailand.