The Bank of Thailand said it stood ready to act if needed, but stopped short of following some other Asian central banks and easing official borrowing costs.
“Risks to the global economy increased further as weaknesses in consumer spending and the labour market damped US economic growth, while a comprehensive resolution to the Eurozone crisis remains elusive,” BoT assistant governor Paiboon Kittisrikangwan said in a statement.
The Thai economy has recovered steadily from last year’s floods and is “close to potential”, supported by lower interest rates, good employment opportunities and government stimulus measures, Mr Paiboon said.
“These factors should continue to sustain private consumption and investment expenditures going forward,” he added.
But in a possible sign of another rate cut in the future, two of the bank’s seven-member monetary policy committee voted in favour of a quarter-point reduction at last week’s meeting.