BOT confident in GDP growth during second half of 2014

BOT confident in GDP growth during second half of 2014

BANGKOK, 23 August 2014 (NNT) - The Bank of Thailand has expressed confidence in the growth outlook of the country’s economy during the second half of 2014.

BOT spokesperson Chirathep Senivongs Na Ayudhya said that the central bank believes Thailand’s economy during the last six months of the year will expand at its potential after the country’s new prime minister takes office.

Gen. Prayuth Chan-ocha was selected at the prime minister by the National Legislative Assembly earlier this week and he is now awaiting the royal endorsement before starting his new role as the government’s leader under the provisional Constitution.

Mr. Chirathep said that the new prime minister will be a factor that can boost investors' confidence further.

He added that everyone is now counting on the performance of the new prime minister and the new government as they need to implement both urgent projects alongside medium- and long-term programs to bring Thailand forward — all of which are considered very challenging tasks.

The BOT spokesperson went on to say that the bank is confident in the growth potential and outlook of the country’s economy just when investors are also hoping to see a marked recovery of Thailand.

In addition, Mr. Chirathep said that the bank’s Monetary Policy Committee will continue to keep a close eye on the government’s economic policies before convening a meeting to deliberate Thailand’s interest rate policy in September, after leaving the benchmark rate at 2.0% since its last cut in March.

He said that the MPC will consider whether the monetary policy should be eased further to support the economic growth will depend on various factors, although it has recognised that the country’s household debt level has not risen further in recent months after consumers became more cautious in their spending. Thailand’s household debt stood at more than 80% of GDP at the end of 2013, according to the BOT data.


-- NNT 2014-08-23