The Committee voted unanimously to maintain the policy rate at 0.50 percent to support the economic recovery which remained highly uncertain.
The Committee assessed that, while the new wave of the COVID-19 outbreak and the containment measures would affect the Thai economy in the short term, the economic recovery continued to be on track thanks to government measures and export recovery.
Uncertainties surrounding the economic outlook remained high
Nevertheless, uncertainties surrounding the economic outlook remained high with considerable downside risks. The economy would thus need support from the continued low policy rate.
The Committee therefore voted to maintain the policy rate at this meeting to preserve the limited policy space to act at the appropriate and most effective timing.
Impact of the recent outbreak on the Thai economy
The Committee assessed that the impact of the recent outbreak on the Thai economy would be less severe than last year due to less strict containment measures.
Additional support from the timely and targeted government measures together with the export recovery would support economic growth. The Committee thus expected the economy to expand somewhat lower than the previous forecast.
The recovery prospect remained highly uncertain
Nonetheless, the recovery prospect remained highly uncertain, which would in the short term depend mainly on the situation of the new wave of the COVID-19 outbreak and corresponding containment measures.
At a longer horizon, it would depend on
- (1) the recovery in foreign tourist figures,
- (2) efficacy and coverage of COVID-19 vaccination,
- (3) continued and sufficient fiscal support, and
- (4) the labor market situation, which became more fragile as the numbers of unemployed and underemployed workers were expected to rise in the short term.
Furthermore, recoveries across economic sectors were likely to be more uneven which would affect the sustainability of the economic growth going forward.
The financial system remained sound despite increasing vulnerabilities in some segments due to the negative shocks from the recent outbreak.
In particular, low-income households and SMEs became more vulnerable. Headline inflation was projected to return to the target in the middle of 2021 and would stay close to the lower bound of the target range throughout the forecast period. Medium-term inflation expectations remained anchored within the target.
Download the full statement here
The Importance of E-Wallets for Online Gaming Sites
With e-wallets and cryptocurrency being the most relevant options, banks have been put on the side burner, especially when e-wallets and cryptocurrency allow for fast electronic transfer, that is done instantly.
Thai Government to issue Bt50 bln ( $1.57 bln)Savings Bonds to fund COVID-19 Relief Measures
The special savings bonds are available via the “Sasom Bond Mung Kung” e-wallet, abbreviated to “Sor Bor Mor” in Thai on Krungthai Bank’s Pao Tang mobile app, and through four dealer banks. The minimum purchase of these bonds is 1,000 baht, without no maximum. Interest is paid twice a year.
BANGKOK (NNT) – Thailand’s Public Debt Management Office (PDMO) plans to issue “Ying Aom Ying Dai” (the more you save, the more you earn) government savings bonds, worth 50 billion baht, next month, aiming to use the funds to finance state projects to ease the impacts of the pandemic.(more…)
Subscribe via Email
Asia’s slow rate of vaccination is a thorn in the region’s economic recovery
Southeast Asia has been hit badly. Daily infections for Indonesia, Thailand, Vietnam are at their worst, on a seven-day moving...
TAT expects 850 billion baht ($25.7 bln) in tourism revenue after successful reopening
The Tourism Authority of Thailand (TAT) has set this year’s revenue target at 850 billion baht, 300 billion of which...
Download 1xBet mobile and play all over the world
Placing profitable bets or playing in a casino is now possible comfortably even without being tied to a computer. It...
3 ways Asia can recover from the COVID-19 pandemic faster
Countries in the East Asia and Pacific region will benefit from cooperation in three major areas: vaccine deployment, reviving sectors...
Thailand’s Vaccine Strategy: What went wrong?
Questions are being asked, and not answered, over the decision to rely almost entirely on Siam Bioscience, a local, palace-owned...