The Wall Street Journal-20080117-Thailand Leaves Rate Unchanged

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Thailand Leaves Rate Unchanged

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The Bank of Thailand left its policy rate unchanged at 3.25% despite rising inflation as the domestic economy remains fragile, political uncertainty is heightened and exports, a mainstay of growth, are likely to slow.

The policy rate, cut 1.75 percentage points last year to prop up the economy in the aftermath of the September 2006 coup, has held steady for four straight meetings. Bank of Thailand Assistant Gov. Duangmanee Vongpradhip said inflation pressures are mounting but remain manageable.

Core inflation is likely to remain within the central bank's 0%-to- 3.5% target range for the next eight quarters, she said.