The Bank of Thailand’s Monetary Policy Committee maintains the policy rate at 2.50%, citing economic recovery from tourism and domestic demand, while anticipating inflation to meet targets by year-end.
Bank of Thailand Maintains Policy Rate
The Bank of Thailand’s Monetary Policy Committee has decided to keep the policy rate steady at 2.50 percent, reflecting confidence in the economic recovery fueled by rising tourism and domestic demand. Although two members proposed a 0.25 percentage point cut, the majority agreed that the current rate promotes macroeconomic stability. Thailand’s GDP grew by 2.3 percent in Q2 2024, backed by increases in private consumption, government spending, and exports.
Economic Outlook and Concerns
Looking forward, the committee anticipates economic expansion in 2024, despite a sluggish recovery in exports. Inflation is expected to align with target levels by year-end, aided by supply dynamics and government support. However, concerns about elevated household debt persist, alongside challenges in financial access for small and medium enterprises. The Committee will closely monitor these factors to guide future monetary policy decisions.
Thailand’s central bank has maintained the benchmark interest rate at 2.50 percent, aiming to support economic recovery amid ongoing global uncertainty. This decision reflects the bank’s focus on sustaining domestic growth while navigating challenges such as inflationary pressures and external factors. By keeping the rate steady, the Bank of Thailand intends to encourage consumer spending and investment, crucial for bolstering economic activity.
Inflation remains a concern, influenced by rising energy costs and supply chain disruptions. However, the central bank perceives current inflation levels as manageable, and it anticipates easing pressures in the coming months. The decision to hold rates steady indicates confidence in the ongoing recovery from the pandemic’s impact and an intention to foster stability in financial markets.
Analysts suggest that the central bank will continue monitoring economic indicators closely and may adjust its policy stance based on emerging trends. The stability in interest rates aims to provide confidence to businesses and consumers alike during this transitional period.
Source : Thailand’s central bank keeps interest rate at 2.50 percent
