The Committee voted unanimously to maintain the policy rate at 1.75 percent assessing that the Thai economy would expand around its potential despite at a slower pace than previously assessed due to a slowdown in external demand.

Nevertheless, domestic demand would continue to gain traction. Headline inflation projection was in line with the previous forecast, while core inflation would be slightly lower than previously assessed.

The BoT now forecasts 2019 economic growth of 3.8%, rather than 4.0% three months ago.

Slower exports growth

Meanwhile, merchandise exports grew at a slower pace than previously assessed due to the global economic slowdown, a down cycle of electronic products as well as impacts from trade protectionism measures between the US and China.

Overall financial conditions remained accommodative and conducive to economic growth. However, there were risks to financial stability in the future that warranted continued monitoring.

The Committee viewed that the current accommodative monetary policy stance had contributed to the continuation of economic growth and was appropriate given the inflation target.

In addition, given heightened global and domestic uncertainties in the current period, the Committee thus voted to keep the policy rate unchanged at this meeting to assess the clarity of impacts from such uncertainties