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Thailand Kept Interest Rate Unchanged
Thailand's consumer confidence rose for the first time in five months in June after the seven-month-old government said it would spend more than 1.4 trillion baht by the end of 2012. Policy makers in the Southeast Asian nation have begun saying the economy may be past the worst after declines in exports and manufacturing stabilized. Policy makers "assessed that the growth of the Thai economy would improve going forward provided that the global economic recovery sustained and the fiscal impetus started to intensify," the central bank said. The current monetary policy is "accommodative and would be supportive of an economic recovery in a subdued inflation environment."
Thailand's central bank kept its benchmark interest rate unchanged at a second straight meeting amid signs government spending has helped moderate the pace of the nation's economic contraction. The Bank of Thailand held the one-day bond repurchase rate at 1.25 percent, it said in a statement today. That's the lowest level since July 2004. Seventeen of 18 economists surveyed by Bloomberg News expected the decision. One economist predicted a 25 basis-point cut. The decision "indicates confidence that the economy has bottomed out and may rebound without further monetary policy easing," said Rapee Sucharitakul, executive chairman of Kasikorn Asset Management Co., Thailand's biggest mutual-fund company with 470 billion baht ($13.8 billion) of assets. "Higher government spending will be a key driver for growth from now on."read source article