Thailand's central bank on Wednesday maintained its economic growth outlook for this year and next as risks increased, although it was more positive on exports and left its policy interest rate unchanged again. Policymakers are counting on government spending to keep economic engines humming as it confronts rising global trade protectionism and emerging market capital outflows in the wake of rising US interest rates.
Thailand's economy has yet to regain traction since the army seized power in May 2014 to end months of political unrest. Exports and domestic demand remain weak amid high household debt and shaky consumer confidence. The junta has introduced stimulus measures but has been slow to push through big infrastructure projects while private investment has been hurt by political uncertainty.
The Bank of Thailand's Monetary Policy Committee voted unanimously to keep the one-day repurchase rate at 1.50 percent, where it has been since April 2015. "The committee assessed that the Thai economy would continue to expand at a pace close to the previous assessment, but downside risks increased," it said.
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