Thai monetary policy should remain accommodative to help economy - central bank

[webfact]

Thai monetary policy should remain accommodative to help economy - central bank

 

FILE PHOTO: The Bank of Thailand logo is pictured in Bangkok, Thailand, August 5, 2016. REUTERS/Chaiwat Subprasom

 

BANGKOK (Reuters) - Thailand's central bank said monetary policy should remain accommodative for some time to support an economy hit by the coronavirus pandemic and help inflation return to target.

 

The Monetary Policy Committee (MPC) expects headline inflation - projected at minus 1.7% this year - to get back to the 1%-3% target range in the second quarter of 2021, the central bank said in an open letter to the finance minister dated July 8.

 

"The accommodative monetary policy should be maintained for some period of time to bolster the economic recovery and domestic purchasing power after the COVID-19 spread is under control," it said.

 

The MPC has cut the policy rate three times this year to a record low of 0.50%. It will next review policy on Aug. 5.

 

For the full letter, click https://www.bot.or.th/English/MonetaryPolicy/openLetter/OpenLetter_July2020.pdf

 

(Reporting by Orathai Sriring; Editing by Ed Davies)

 

-- © Copyright Reuters 2020-07-17

 

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[1Gringo]

may the Baht devalue as compared to other currencies!

[vivananahuahin]

I think something smell in the air.Surprise.i

[hotchilli]

7 hours ago, webfact said:

Thailand's central bank said monetary policy should remain accommodative for some time to support an economy hit by the coronavirus pandemic and help inflation return to target.

Talks cheap...