Bank of Thailand (BoT) Governor Tarisa Watanagase on Thursday said the policy interest rate is likely to increase before the end of this year if the economy continues growing satisfactorily. She said whether the Monetary Policy Committee raises the policy interest rate at its next meeting on July 14 depended mainly on the global economic situation and local political developments which impact consumer and investor confidence.
“The overall picture of the Thai economy remains not different from we had projected earlier. The economy may slow down to a certain extent due to the local political unrest while inflation is expected to edge up. Given these factors, we may need to adjust the monetary policy from the outset. At least, we may raise the interest rate once by the end of this year if the economy remains stable,” she said.
Last week the Bank of Thailand (BoT) continued the key interest rate unchanged at a record low of 1.25 per cent, reasoning that uncertainties related to the impact of sovereign debt problems in Europe and the domestic political situation remain key risks to Thailand’s growth outlook.
BoT assistant governor Paiboon Kittisrikangwan announced the outcome of the Monetary Policy Committee (MPC) meeting on Wednesday.
Global economic outlook has improved since the last MPC meeting, supported by continued growth in the US, Japan and particularly in Asia. However, sovereign debt problems in some European economies may dampen the region’s recovery and pose risks to the sustainability of global growth. The MPC will closely monitor the outcome of measures taken to resolve problems and restore confidence in Europe.
The Thai economy expanded in the first quarter of 2010 at a stronger pace than anticipated. This was driven by strong growth in exports and tourism, on the back of global economic recovery. Also, domestic demand, especially private investment, continued to expand. In April, economic activities slowed down somewhat, partly owing to adverse impacts of domestic political situation on tourism as well as confidence of consumers and businesses. Meanwhile, inflation remains low at present but is projected toincrease in the periods ahead.
If the Greek debt crisis and the global economy improve, the MPC may revise its forecast that the Thai economy is likely to grow over 5.8 per cent, higher than 4.3-5.8 per cent projected earlier, he said.
In April, economic activities slowed somewhat owing in part to adverse impacts of the domestic political situation on tourism as well as confidence of consumers and businesses.
Global economic outlook has improved since the last MPC meeting, supported by continued growth in the US, Japan and particularly in Asia. However, sovereign debt problems in some European economies may dampen the region’s recovery and pose risks to the sustainability of global growth. The MPC will closely monitor the outcome of measures taken to resolve problems and restore confidence in Europe.increase in the periods ahead.
Thailand’s economic growth expected to return to 2019 levels in mid-2023
Although the economy would recover next year, the recovery is still substantially below potential level resulting in a large output loss and could affect Thailand’s potential economic growth in the future with the economy expected to return to 2019 levels in mid-2023.
The Siam Commercial Bank (SCB), one of Thailand’s largest commercial banks, said in its latest economic outlook report that the country’s economy may wait until the second semester of 2023 to return to 2019 growth levels.(more…)
S&P maintains Thailand’s credit rating at BBB+ with stable outlook
Standard and Poor’s (S&P) maintained Thailand’s credit rating at BBB+ . The global rating firm expects the country’s gross domestic product (GDP) to grow at 1.1% this year, with a more optimistic growth at 3.6% per year from 2022 to 2024.
Standard and Poor’s (S&P) maintained Thailand’s credit rating at BBB+ . The global rating firm expects the country’s gross domestic product (GDP) to grow at 1.1% this year, with a more optimistic growth at 3.6% per year from 2022 to 2024.(more…)
Can border reopening revive tourism in South-East Asia?
In Thailand, where pre-pandemic tourism accounted for 11-12% of GDP, the country lost an estimated $50bn last year as Covid-19...
Thailand dropped from UK’s tough covid-19 travel ‘red list’
Earlier, Thailand was listed among countries with high infection levels that were put on a ‘red list’, requiring arrivals to...
The ASEAN-Russia Trade and Investment Cooperation Work Program
ASEAN and Russia recently agreed to enhance and widen economic cooperation at the 10th ASEAN Economic Ministers (AEM)-Russia Consultations held...
Flexible Workspace Startup Worklounge Debuts with 20+ Luxury Member Lounges in Thailand
Worklounge launches a premium membership granting remote professionals and executives access to exclusive hotel lounges across Thailand. Their platform is...
5 insights to guide ASEAN’s digital generation in a post-pandemic world
We surveyed 86,000 people from six ASEAN countries about their views for a post-pandemic world. The ASEAN Digital Generation Report...