Bank of Thailand maintains policy rate at 0.50% in bid to boost recovery
The central bank’s Monetary Policy Committee on Wednesday voted unanimously to maintain the policy rate at 0.50 per cent in a bid to support economic recovery amid uncertainties.
Titanun Mallikamas, the committee’s assistant governor, said the Thai economy is expected to grow by 3 per cent this year, and by 4.7 per cent next year thanks to a recovery in the export sector and the government’s stimulus measures.
“However, the expansion still lower than previously predicted due to the drop in foreign tourists and the fallout of the Covid-19 pandemic,” he said.
The committee also expects the country’s inflation rate to be lower than expected, though credit risk is likely to rise as many households and businesses are under pressure due to the new wave of infections.
“Hence, we believe that the continuation of stimulus measures and cooperation between government agencies is key to relieving people’s sufferings, which will lead to a sustainable economic recovery,” he said.
He added that the committee will use additional financial tools to support recovery if necessary, while monitoring the sufficiency of government measures and other risk factors, like the pandemic situation both locally and overseas.
