Thailand keeps interest rates steady

Thailand's central bank kept its key interest rate unchanged at 5.0 percent on Wednesday, concerned about a slowdown in economic growth which analysts said suggested rates may have peaked for this year.
The decision, following an aggressive tightening cycle that included 13 rate rises in less than two years, comes as inflation is expected to ease in the second half of 2006, the bank said.
"Looking ahead, in light of many uncertainties, including oil prices, there is a risk that the economy, especially in private investment demand, may continue to slow down for some time," it said in a statement.
Economists expect economic growth to be weighed down in the second half of 2006 by costly energy imports and sluggish investment in the wake of domestic political uncertainty.