February 28, 2008
BANGKOK - The Bank of Thailand (BoT) yesterday kept its key interest rate unchanged at 3.25 percent despite inflation last month hiking to an 18-month high on soaring energy and food prices.
The decision was in line with the market's forecast, and the Central Bank has left the interest rate steady at 3.25 percent since August last year, according to AFP.
The central bank said in a statement that exports remained robust and sluggish domestic demand had started picking up.
Bolstering the economy is one of the top priorities for Thailand's new government, which is expected to launch an economic stimulus package including tax cuts in early March.
The bank said it hoped the package would help improve business confidence.
Chai Chirasevenupraphand, market analyst at Capital Nomura Securities, said the central bank should take measures to rein in inflation, which jumped to an 18-month high of 4.3 percent in January from 3.2 percent in December.
