Thai economy faces uncertainty, monetary policy to stay accommodative

[snoop1130]

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

 

BANGKOK (Reuters) - Thailand's central bank said on Monday there was high uncertainty facing the economy and monetary policy would remain accommodative to support a recovery from the country's most prolonged outbreak of the coronavirus.

 

The Bank of Thailand (BOT) has forecast economic growth of 0.7% this year, bottoming out in the third quarter and growing 3.9% in 2022.

 

The economy contracted 6.1% last year, with the key tourism sector still struggling.

 

Thailand's economic recovery may still lag others and "next year, our baseline is that the financial sector and monetary policy must remain supportive," Assistant Governor Piti Disyatat told an analyst meeting.

 

The BOT has left its policy rate unchanged at a record low of 0.50% since mid-2020 after cutting it three times earlier that year to help the economy. It has since focused on financial and debt relief measures.

 

The BOT has fully implemented key monetary policy tools, including interest rates and overall financial conditions, Piti said, adding more targeted fiscal and financial measures would be key.

 

Monetary policy is a blunt tool while financial measures are a facilitator that has fully been supportive, he said, adding low inflation also gave "a degree of freedom to us to remain accommodative, to some extent".

 

At a separate seminar, Finance minister Arkhom Termpittayapaisith said monetary policy must support fiscal policy and ensure sufficient liquidity in the system, as government stimulus measures will generally increase inflation.

 

"In a crisis like this, monetary policy must stop doing its job for a while to let fiscal policy work," he said.

 

The economy next year will be driven by domestic consumption and a vaccine rollout but the labour market remains fragile with an expected 3.4 million unemployed or partially employed by year-end, said senior BOT director Chayawadee Chai-Anant.

 

Thailand will reopen to more vaccinated foreign visitors next month.

 

The baht's volatility was in line with regional currencies and the BOT had acted to ensure it would not be an obstacle to economic recovery, said senior BOT director Sakkapop Panyanukul.

 

-- © Copyright Reuters 2021-10-18

 

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(Reporting by Orathai Sririn, Satawasin Staporncharnchai and Kitiphong Thaichareon; Editing by Martin Petty)

[HeijoshinCool]

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Thai economy faces uncertainty...

 

How odd....

 

I'm certain the Thai economy is going to he11 in a hand basket.

 

But at least the worthless dollar is going up.

[Dogmatix]

There is basically no economic management and the government is riddled through and through with corruption.  Thai economic policy is basically to leave it all to large Thai Chinese business families who are allowed to do whatever they like running business monopolies or near monopolies.  The government has no educatino policy beyond wasting human resources of the vast majority of Thais who are forced to attend substandard rural schools.  So it is impossible to move up to higher value added knowledge based businesses in a competitive way. Also nothing spent on R&D by the government and no planning to focus on new industries.  

 

Allowing the economy to continue in a highly uncompetitive direction condemns it to continue growing below its long term sustainble growth potential. 

[spidermike007]

Saying the Thai economy faces uncertainty, is like saying it is likely to be cold in the Arctic this winter. Duh. What sacrifices is Thailand willing to make, to create the so called hub they constantly refer to? Or to drive tourism of the well heeled, they cannot stop ranting about? Ten year visas for free? Allowing foreigners to buy property here? Reducing punitive luxury and wine taxes? Reducing import duties on stuff we want to have shipped here? Ditching the submarine project, to support the people? Dropping all restrictions, except double covid shots, and ONE SINGLE test prior to boarding?
 
It is amazing how these guys go on and on and on about what they are intending to do, and never, ever talk about the sacrifices they are willing to make, to attract these new businesses and investors. A true COTKU (Thailand is the center of the known universe) mentality, and it is so far from reality, it boggles the mind. Millions of jobs have been lost. What is being proposed to help those families get back on their feet?
 
The one principal here, that they have still not come to grips with, is that Thailand needs the world, 100x more than the world needs Thailand.

Thailand continues to be tone deaf, on the wrong side of history, and feeble, in its minor attempts to progress into this century. Anything this administration does is typically dumb, and unplanned. And the effects, ramifications and future are never considered. Predicting a post Covid economy for a nation that was hugely dependent on a grossly sabotaged tourism and sex industry, is likely to have the same accuracy level of guessing the winning numbers for the upcoming mega millions in the US, when it tops $100 million. Sheer ridiculousness at best. Stunning foolhardiness is more appropriate a description for these absolute fools.

 

I could go on all day. My guess is nothing is being done to address anything, and every issue they currently face is being blamed on Covid. Now, they have a real scapegoat, and looking within for the source of any of the problems is less likely than ever.

truly believe, that 20 or 30 years from now, in tourism industry, business and sociology classes, at the uni level, there will be tours of these hollowed out shells, of huge hotels that were built, and could neither find guests to stay, nor even a market for condo conversions, and ended up abandoned, after buyers could not be found, or owners refused to accept 20% of the land and construction costs, as a sales price. 

[FalangJaiDee]

10 hours ago, spidermike007 said:

truly believe, that 20 or 30 years from now, in tourism industry, business and sociology classes, at the uni level, there will be tours of these hollowed out shells, of huge hotels that were built, and could neither find guests to stay, nor even a market for condo conversions, and ended up abandoned, after buyers could not be found, or owners refused to accept 20% of the land and construction costs, as a sales price. 

Lol it’s possible