Bank of Thailand maintains policy rate at 0.5%

[snoop1130]

 

BANGKOK (NNT) - The Monetary Policy Commitee, under the Bank of Thailand, has resolved to maintain its policy rate at 0.5% while it projects only 0.7% economic growth this year

 

4 out of 6 votes were to maintain rate at 0.5% per year. The committee sees more importance in timely fiscal and financial measures which must be accelerated, rather than decreasing an already low policy rate.

 

This is already the 10th time that the commitee has made such a decision.

The Commitee also adjusted its GDP projection in 2020 from 1.8% to 0.7% as the economy is more affected than previously estimated, while the key to a solution is to control the epidemic and the distribution of vaccines.

 

As for fiscal measures, assistance must be accelerated through liquidity diversification and debt reduction of affected groups, according to the committee.

 

For 2022, it downgraded the estimate, from 3.9% to 3.7% in line with private consumption that was heavily affected this year and the sharply lower trend of arriving international tourists. The labor market is also more fragile, especially the service sector and the self-employed group.

 

However, the Thai economy still has additional support from higher government spending in the latest loan decree and expanding product exports. Meanwhile, some parts of the manufacturing sector have been affected by outbreaks of the virus in factories and temporary shortages of raw materials.

 

-- © Copyright NNT 2021-08-05

 

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[Khabib]

It's an excellent return on a currency that's lost 15% recently. Recoup in 30 years 55

[SmartyMarty]

Slip sliding away……

 

[Isaan sailor]

Coulda used a rate cut back when the USD hit 29.xx Baht, and all currency traders thought Thailand a great place to invest in.

[spidermike007]

And yet, how large is the spread at the banks, when it comes to home, condo, or car loans? And does the finance ministry even care?