Jump to content

Thai central bank seen holding key rate steady, likely to cut GDP forecast - Reuters poll


Recommended Posts

2021-03-22T053557Z_1_LYNXMPEH2L0B8_RTROPTP_4_THAILAND-ECONOMY-RATES.JPG

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

 

By Orathai Sriring

 

BANGKOK (Reuters) - Thailand's central bank is expected to maintain policy for a 10th straight month and leave its key rate at a record low, but will likely cut its outlook for economic growth when it meets on Wednesday, a Reuters poll showed.

 

The Bank of Thailand's current forecast for GDP in 2021 calls for 3.2% growth but Governor Sethaput Suthiwartnarueput said last month that growth could be in the "upper 2% levels".

 

A second wave of coronavirus outbreaks in December has hampered an economic recovery and the Finance ministry in January cut its GDP forecast to 2.8% growth from 4.5%.

 

With few policy tools left at its disposal, all 14 economists surveyed believe the central bank's Monetary Policy Committee will hold its one-day repurchase rate at 0.50%.

 

The rate has been unchanged since three reductions between February-May 2020, when the COVID-19 pandemic first devastated the tourism-reliant economy.

 

Thailand has, however, largely contained the second wave of infections and has eased restrictions to boost domestic activity while preparing to gradually reopen to foreign visitors.

 

Takit Chartchredsak, an economist at Asia Plus Securities, now expects no policy change throughout 2021, revising his previous view that there could be one more rate cut in the second quarter.

 

"We see the economy is improving quickly as the lockdown was relaxed sooner than expected. But the recovery will still take time," he said.

 

A recent weaker baht should also help exports, another key driver of Thailand's economy.

 

Tim Leelahaphan, an economist at Standard Chartered, noted that the rate was already close to zero, adding that "the effectiveness of previous rate cuts in boosting the economy is unclear."

 

At its last meeting, the BOT said the outlook for the economy remained highly uncertain and what limited policy options it had should be used at the most effective time.

 

(Reporting by Orathai Sriring; Additional reporting by Satawasin Staporncharnchai; Editing by Edwina Gibbs)

 

reuters_logo.jpg

-- © Copyright Reuters 2021-03-22
 
Link to comment
Share on other sites


With the Fed level at 0.5%, how on earth are the banks here able to get away with the kind of interest rates, that they charge on loans? Is it even "legal"? It seems extortionate. Is there no federal regulation of lending practices here? It is totally out of proportion to the record low rates found in the US and Europe at this time. 

 

https://www.statista.com/statistics/615037/mortgage-interest-rate-europe/

 

Edited by spidermike007
Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.








  • Topics

  • Latest posts...

    1. 45

      Which state that Trump won in 2020 will he lose this time?

    2. 2

      White House Rebukes False Claims Amid Hurricane Helene Relief Efforts

    3. 2

      White House Rebukes False Claims Amid Hurricane Helene Relief Efforts

    4. 372

      Harris Lies, Americans Die. Illegal Aliens are more Important

    5. 372

      Harris Lies, Americans Die. Illegal Aliens are more Important

    6. 262

      Is Thailand Value for money

    7. 45

      Which state that Trump won in 2020 will he lose this time?

    8. 0

      No travel insurance for me !

    9. 493

      White Culture

    10. 493

      White Culture

    11. 493

      White Culture

    12. 2

      White House Rebukes False Claims Amid Hurricane Helene Relief Efforts

    13. 0

      17 Arrests Made as Pro-Palestinian Protests Sweep London

    14. 0

      Elon Musk Joins Donald Trump in Rally, Energizes Supporters

    15. 0

      Legal Battle Looms over VAT on Private Schools: Parent’s Fight for Special Needs Education

×
×
  • Create New...