Thailand's CB leaves key interest rate unchanged

(MENAFN) The Bank of Thailand (BOT) decided to hold its benchmark interest rate unchanged at 2.75 percent, on a stable inflation rate and expectations of a higher growth than thought, Reuters reported. The central bank said its seven-member Monetary Policy Committee (MPC) unanimously agreed to hold the one-day repurchase rate for the second straight meeting after a surprise quarter-point cut in October. BOT estimated growth in the fourth quarter of 2012 would probably turn out higher than expected, leading it to expect higher growth rates in full-2012, and boosting hopes of a growth this year. Thailand's economy has overcome the ongoing global crisis thanks to the strong domestic demand, as Thailand recovered from floods in late 2011, which helped offset weakness in exports. The central bank expected inflation to stand at 2.8 percent this year, with core inflation, which strips out food and energy prices, at 1.7 percent, well within its target range of 0.5-3 percent, which guides monetary policy.