For the first time since 2015, the Bank of Thailand cut its benchmark interest rate on Wednesday, by 0.25 percentage point from 1.75 to 1.50 percent, effective immediately

In deliberating their policy decision, the Monetary Policy Committee (MPC) assessed that the Thai economy would expand at a lower rate than previously assessed due to a contraction in merchandise exports, which started to affect domestic demand.

The Thai economy was expected to expand at a lower rate than previously assessed and below potential due to the slowdown of trading partner economies and global trade, which were affected by intensifying trade tensions that could expand to other countries.

However, the relocation of production base to Thailand and public-private partnership projects for infrastructure investment would support investment in the period ahead.

Public expenditure would grow at a slower pace than previously estimated on account of public investment, which was partly a result of constrained budget disbursement, as well as the expected delay in the enactment of the Annual Budget Expenditure Act, B.E. 2563 (A.D. 2020).

The Thai baht has been Asia’s best performing currency in 2019, according to Bloomberg estimates, rising by more than 6 per cent against the dollar in the year to date.

Both exports and tourism industry, which have been under performing in the year to date, have been hurt by the rising Thai currency .

Source : Bank of Thailand

About the author

Bangkok Correspondent at Siam News Network

Bangkok Correspondent for Siam News Network. Editor at Thailand Business News

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Sign Up for Our Newsletter

Get notified of our weekly selection of news

You May Also Like

Citi to Sell Consumer Bank in Indonesia, Malaysia, Thailand and Vietnam to UOB Group

The agreement covers all related Citi staff, with approximately 5,000 consumer bank and supporting employees expected to transfer to UOB upon close of the proposed transaction. 

Moody’s affirms Thailand’s Baa1 rating and keeps outlook stable

The affirmation of the Baa1 ratings reflects Moody’s expectations that Thailand will continue to display economic resiliency to future shocks, underpinned by its large and diverse economy and strong macroeconomic policy effectiveness.

Bank of Thailand keeps policy rate unchanged at 0.5%

The Bank of Thailand kept its key policy rate unchanged at 0.5%, amid growing pressure coming from rising prices and monetary policy tightening by its peers.