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Thai central bank needed to preserve limited policy room - minutes

BANGKOK, Aug 19 (Reuters) - Thailand’s central bank saw a need to preserve monetary policy room to use at the most appropriate and effective time, when it kept its benchmark rate steady at a record low earlier this month, meeting minutes showed on Wednesday.

On Aug 5, the Bank of Thailand’s (BOT) monetary policy committee voted unanimously to leave the one-day repurchase rate steady at a record low of 0.50% after cutting it three times this year.

“The committee viewed that the record-low policy rate would support the economic recovery,” the minutes said.

“Moreover, a further decrease in the policy rate would be less effective in the current context, where it could affect financial intermediation, increase vulnerabilities in the financial system through underpricing of risks, as well as affect savings,” they said. (Reporting by Orathai Sriring Editing by Ed Davies)