Jump to content


Thailand Trims Interest Rate to Tackle Uneven Economic Recovery


snoop1130

Recommended Posts

N01231-FR-01_uxga.jpg

 

In an unexpected move, Thailand’s central bank has cut the key policy interest rate for the first time since 2020. Minutes from the Bank of Thailand’s October 16 meeting reveal the Monetary Policy Committee decided to lower the one-day repurchase rate by 25 basis points to 2.25%, aimed at addressing tightening financial conditions and supporting household debt alleviation.

 

The decision, approved by a 5-2 majority, focuses on mitigating the impact of stringent financial scenarios on the nation’s economic health. The central bank aims to facilitate a smoother path for household debt reduction, considering Thailand's high household debt-to-GDP ratio of 89.6% as of the second quarter.

 

In a prepared paper, the BoT identified domestic demand and tourism as critical drivers for future economic growth. The bank adjusted its GDP growth projections slightly upwards for 2024 and 2025, acknowledging the previous year's slower growth of 1.9%.

 

The bank maintains that while rates should be neutral to match economic potential, vigilance is necessary to prevent long-term imbalances. All eyes are on the next rate review on December 18, as Thailand continues to navigate a complex economic landscape.

 

File photo for reference only

 

news-logo-btm.jpg

-- 2024-10-30

 

news-footer-2.png

 

image.png

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.