Bank of Thailand holds rates at 2.25% as political crisis deepens

BANGKOK - In a close call, and against market expectations, the Bank of Thailand has held its benchmark repo rate unchanged at 2.25%. A range of economic indicators have weakened in recent months, as tourists and investors stay on the sidelines due to continuing protests against the incumbent government of Prime Minister Yingluck Shinawatra.

The government this week declared a state of emergency to restrain anti-government protests ahead of national elections scheduled for February 2 (which the opposition vows to boycott). The BOT last cut rates in November. BBVA Bank says it would not rule out another cut in the months ahead, given downside risks to growth and benign inflation. www.bbvaresearch.com (ATI).