BANGKOK: Thailand's central bank will likely leave its key interest rate unchanged on Wednesday, in its first policy review since a military coup, with an end to political gridlock and the junta's spending plans expected to support the economy, a Reuters poll showed.
The army seized power on May 22 in a bid to restore order and confidence after months of political turmoil that has depressed economic activity and tourism. The junta has acted fast to tackle problems in Southeast Asia's second-biggest economy that shrank in the first quarter.
Economists said the central bank could decide to monitor the outcome of expected fiscal measures, rising inflation, high household debt levels and risks of capital outflows before acting. Its monetary policy committee (MPC) meets on Wednesday.
Last week, the central bank governor said the rate was already low, while an independent member of the seven-member MPC said cutting rates before political stability might do little to help the economy.
At the last meeting on April 23, the MPC voted 6-1 to keep the benchmark rate steady, saying monetary policy was still supportive of the economy amid political uncertainty and that the scope for further cuts was getting smaller.
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