Connect with us

Banking

BoT trims growth forecast to 3.3% from 3.8%

The bank of Thailand while maintaining a policy rate of 1.75 percent per year, announced that in 2019, the economy will expand at the lower rate of 3.3 percent from 4.1 percent in 2018,

Published

on

BANGKOK, 28 June 2019(NNT) – The Bank of Thailand (BOT) announced yesterday that the Thai economy is likely to expand at a slower pace than expected in the previous assessment mainly due to the slowing of merchandise exports.

Therefore, it has forecast that in 2019, the economy will expand at the lower rate of 3.3 percent from 4.1 percent in 2018, while maintaining a policy rate of 1.75 percent per year to create a relaxed atmosphere for the stability of the financial system.

Thai economic growth forecast down to 3.3 percent

The Monetary Policy Committee (MPC)’s meeting has unanimously decided to maintain the policy rate at 1.75 percent per year and has reduced the Thai economic growth forecast this year to 3.3 percent from the previous forecast of 3.8 percent.

In 2020, the Thai economy is now expected to grow by 3.7 percent from the previous forecast of 3.9 percent.

Merchandise exports would grow at a significantly slower pace than in the previous assessment due to the slowdown of trading partner economies and global trade, which were affected by intensifying trade tensions between the United States and China.

0% export growth forecast

As a result, exports this year won’t expand or are at 0-percent growth point, much lower than the previous forecast of three percent per year. The MPC will closely monitor all risks.

MPC maintains Policy Rate at 1.75% per year
MPC maintains Policy Rate at 1.75% per year . Picture : NNT

The MPC is monitoring the baht which has appreciated substantially and is not consistent with economic fundamentals. The BOT will closely monitor developments in exchange rates and will soon launch more intensive measures to manage short-term funds.

This year’s inflation rate was projected to be one percent due to rising food prices, structural changes, the impact of the expansion of online business which results in greater price competition, along with the development of technology that decreases the cost of production, resulting in inflation rising more slowly than in the past.

Private consumption is expected to expand by 3.8 percent this year, while still being pressured by a high level of household debt and signs of moderation in earnings and employment in the export-related manufacturing sector.

Meanwhile, public expenditure should grow by 2.2 percent, a slower pace than previously estimated due to the expected three-month delay in the enactment of the Annual Budget Expenditure Act, B.E. 2563, as well as postponement of some state-owned enterprise investments.

The budget disbursement will begin in early 2020. However, the MPC admitted that while the Thai economy has slowed, the policy interest rate at a relaxed level will support economic growth.

Source link

Click to comment

Leave a Reply

Banking

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.

Published

on

e-wallet

Online gambling is an industry that needs to keep up with technological trends, to make sure it stays relevant and convenient within the gambling community.

(more…)
Continue Reading

Banking

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.

Published

on

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…)
Continue Reading

Most Viewed

Subscribe via Email

Enter your email address to subscribe and receive notifications of new posts by email.

Join 14,162 other subscribers

Wise

Recent