The Bank of Thailand (BoT) maintained the policy interest rate at 1.25 per cent annually to favour economic recovery. The Monetary Policy Committee (MPC) meeting on Wednesday opted to keep the policy interest rate unchanged, BoT assistant governor Paiboon Kittisrikangwan said in a statement.
“The global economy continues to improve. However, risks to economic recovery in the period ahead remain, especially for the major industrialised economies,” the BoT statement said.
“The Asian economies are likely to recover sooner, giving rise to policy differentials which may lead to more volatile capital flows going forward. Asian currencies therefore are volatile,” it said.
“The MPC will not allow the interest rate to remain low for too long to avert a liquidity problem, leading to the bubble economy,” Mr Paiboon said.
“The latest economic data pointed toward a continued recovery of the Thai economy. Main supporting factors include improvements in private consumption, income from tourism, exports and agricultural sectors. Nevertheless private investment remains subdued,” said the statement.
Read more from the original source:
External stability in Thailand was upheld by high international reserves, while trade and current account were close to balance. Regarding internal stability, inflation rose from last year in line with higher oil prices, despite a downward trend during the second half of the year. Unemployment rate remained low in Thailand in 2008 but employment started to deteriorate in the forth quarter, particularly in the production sector affected by economic slowdown.
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…)
World Bank cuts Thailand’s GDP growth outlook to 1% in 2021
The World Bank has said that Thailand’s economy is forecast to grow 1% this year, down from the 2.2% projected in July, hit by a spike in COVID-19 cases and a delayed reopening to visitors.
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...