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Wednesday, the Bank of Thailand left its policy interest rate unchanged at 1.25% per annum. The interest rate decision matched economists' expectations. The Monetary Policy Committee said, "The current level of policy interest rate is appropriate and supportive of the economic recovery."
Driven by rise in oil prices, headline inflation turned positive in November after nine months of deflation. Consumer price annual inflation rose to 1.9% from 0.4% in October. According to central bank, the pressure of demand on inflation remained subdued at the present time, but the MPC pledged to closely monitor future developments.
Further, the central bank judged that the economic recovery would possibly continue at a gradual pace and requires sustained policy support. Improvement of domestic and foreign order books, business sentiment and farm income supported the recovery.
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