Thai central bank holds key rate, cuts 2019 growth, export forecasts

 

FILE PHOTO: Thailand's central bank is seen at the Bank of Thailand in Bangkok, Thailand in this April 26, 2016 file photo. REUTERS/Jorge Silva/File Photo

 

BANGKOK (Reuters) - Thailand's central bank held its benchmark interest rate steady for a second straight meeting on Wednesday as expected, and cut its forecasts for economic growth and exports this year.

 

The Bank of Thailand (BOT)'s monetary policy committee held the one-day repurchase rate at 1.75 percent.

 

All 19 economists polled by Reuters had predicted no change to policy.

 

The bank held its fire at the February review after hiking the rate by 25 basis points in December for the first time in more than seven years and from near record lows.

 

The BOT now expects 2019 economic growth of 3.8 percent, rather than 4.0 percent seen three months ago. It predicts exports will rise 3.0 percent, rather than increase 3.8 percent seen earlier.

 

The BOT forecasts headline inflation of 1.0 percent this year, unchanged from December.

 

In 2018, Southeast Asia's second-largest economy expanded 4.1 percent, the highest rate in six years.

 

(Reporting by Kitiphong Thaichareon and Orathai Sriring; Editing by Darren Schuettler)

 

-- © Copyright Reuters 2019-03-20

This should be referred to as the elite news or news for 1%.

The annual ritual of gradually reducing the overly optimistic annual growth rates begins as reality bites.

19 hours ago, webfact said:

Thai central bank holds key rate, cuts 2019 growth, export forecasts

Presumably these forecasts are being made on the reasonable expectation that PM Prayut will retain his power and so lead the economic slide downwards. 

In other reports his wet dream of an Eastern economic Corridor seems to be falling flat. Foreign investors seem reluctant to stump up the funds for investment while the government itself has been has spent relatively little on the required infrastructure; probably because they have grossly overspent on unnecessary military acquisitions.

Have they ever reached their lofty goals regarding anything in Thailand? It seems every year these so called economic experts come up great predictions for the economy in all areas only to have those blow up in their faces and then be forced to downsize their expectations. Isn't that considered a huge loss of face??? Oh sorry, I forgot T.I.T. does not always to the Government.

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50 minutes ago, Cadbury said:

In other reports his wet dream of an Eastern economic Corridor seems to be falling flat. 

I've got the same impression.  But if listening to Board of Investment (BOI) or National News Bureau of Thailand (NNT), which are mouthpieces of the government....always putting a positive spin on anything the govt does as that's their job, the Eastern Economic Corridor is doing great...growing like gang-busters...many new companies setting up shop. 

 

And this high speed rail thing on the scale the govt wants to do it.  While great for spending a lot of tax dollars and creating construction jobs while being built, it is "not" going to be profitable...it will be a money-pit as the fares will be too high for the average Thai.  Then the govt will start subsidizing fares...digging the taxpayer money-pit even deeper.  

21 hours ago, webfact said:

Thai central bank holds key rate, cuts 2019 growth, export forecasts

February 4, 2019 - statements by Poj Aramwattananont, vice chairman of Thailand’s Board of Trade:

http://www.nationmultimedia.com/detail/business/30363452

• urged the BOT and Finance Ministry to work together to address the issue of the baht appreciating against other currencies, which hurts the income of farmers throughout the Kingdom.  
• “We are deeply concerned about the trend of the Thai currency as we saw in 2018 how damaging the appreciation can be to the food exports industry.
• Furthermore, both the BOT and the Finance Ministry have yet to show signs of concern on this issue,”

Today - still no signs of concern.

 

8 minutes ago, Srikcir said:

February 4, 2019 - statements by Poj Aramwattananont, vice chairman of Thailand’s Board of Trade:

http://www.nationmultimedia.com/detail/business/30363452

• urged the BOT and Finance Ministry to work together to address the issue of the baht appreciating against other currencies, which hurts the income of farmers throughout the Kingdom.  
• “We are deeply concerned about the trend of the Thai currency as we saw in 2018 how damaging the appreciation can be to the food exports industry.
• Furthermore, both the BOT and the Finance Ministry have yet to show signs of concern on this issue,”

Today - still no signs of concern.

 

I think I read somewhere else today where foreign investors are expressing concern over the possibility of higher wages in Thailand after the election promises and that is causing them to think toward other Asian investment countries with cheaper wages and lower establishment costs.

1 hour ago, Srikcir said:

February 4, 2019 - statements by Poj Aramwattananont, vice chairman of Thailand’s Board of Trade:

http://www.nationmultimedia.com/detail/business/30363452

• urged the BOT and Finance Ministry to work together to address the issue of the baht appreciating against other currencies, which hurts the income of farmers throughout the Kingdom.  
• “We are deeply concerned about the trend of the Thai currency as we saw in 2018 how damaging the appreciation can be to the food exports industry.
• Furthermore, both the BOT and the Finance Ministry have yet to show signs of concern on this issue,”

Today - still no signs of concern.

 

Well, by not raising rates that showed a degree of concern.  If they had raised rates that would have made the baht appreciate even more.

1 hour ago, Srikcir said:

February 4, 2019 - statements by Poj Aramwattananont, vice chairman of Thailand’s Board of Trade:

http://www.nationmultimedia.com/detail/business/30363452

• urged the BOT and Finance Ministry to work together to address the issue of the baht appreciating against other currencies, which hurts the income of farmers throughout the Kingdom.  
• “We are deeply concerned about the trend of the Thai currency as we saw in 2018 how damaging the appreciation can be to the food exports industry.
• Furthermore, both the BOT and the Finance Ministry have yet to show signs of concern on this issue,”

Today - still no signs of concern.

 

 

Three weeks later: 

 

Conicidence?

Edited March 21, 20197 yr by Kaoboi Bebobp

Wonder of the 25% reduction in export forecast growth is down to  a mad baht strength ?