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Have the protests hobbled the Bank of Thailand?

The Bank of Thailand's surprise move to keep interest rates steady rather than cutting could indicate the central bank has hit the limits of monetary policy amid continued political protests.

"The majority view of four members saw that the political gridlock could not be addressed by more accommodative monetary policy," Roong Mallikamas, spokesperson for the Bank of Thailand, told CNBC on Thursday.

"Political uncertainty would likely cause delays in fiscal spending and dent private sector confidence," she said. "Even if the export sector looked to improve on the back of strengthening global demand, it would likely not be enough to compensate for the weaker domestic demand."

(Read more: Thai market may muddle through state of emergency)


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