BOT holds key policy rate in last meeting of the year, ends 2024 with 2.25% interest

 

The Monetary Policy Committee (MPC) of the Bank of Thailand (BOT) has decided to maintain the policy interest rate at 2.25% per annum.

 

The decision, announced by MPC secretary Sakkapop Panyanukul after the meeting on Wednesday, comes as the Thai economy navigates a complex global economic landscape.

 

The MPC believes that the current interest rate level is appropriate to support economic recovery while maintaining price stability. The committee will continue to monitor global economic developments, particularly the policies of major economies, and their potential impact on Thailand, he said.

 

The meeting also projected Thailand's economic outlook. The BOT expects the Thai economy to grow by 2.7% in 2024 and 2.9% in 2025, driven by the tourism sector and private consumption. However, the recovery is uneven, with some sectors like automotive facing headwinds due to pricing and demand issues.

 

 

Inflation is projected to remain low, with headline inflation for 2024 and 2025 estimated at 0.4% and 1.1%, respectively. Core inflation is expected to rise gradually, reflecting economic trends and cost pressures in the food sector.

The MPC also addressed the country's challenges:

• Global uncertainty: The evolving global economic landscape, particularly the policy stances of major economies, poses significant risks to Thailand's export-oriented economy.
• Domestic economic risks: The uneven recovery across sectors, rising debt burden, and potential credit risks in certain segments could impact economic growth.

 

The BOT said it would closely monitor these factors and be ready to adjust monetary policy as needed to ensure price stability and support sustainable economic growth.