BANGKOK – The Bank of Thailand (BoT) maintained its policy rate at a record low of 0.5% for a fifth straight meeting today, and lowered its economic growth forecast for 2021 to 3.2%
The BoT’s Monetary Policy Committee (MPC) unanimously voted to maintain the benchmark interest rate to support the country’s economic recovery which remained highly uncertain.
In a statement, MPC secretary Titanun Mallikamas said the committee assessed that the Thai economy continued to recover but downside risks and uncertainties remained high in the period ahead.
“The economy would thus need support from the continued low policy rate.
“The committee voted to maintain the policy rate at this meeting to preserve the limited policy space in order to act at the appropriate and most effective timing,” he said in a statement.
Meanwhile, BoT revised up its growth forecast for 2020 to a 6.6% contraction compared to the previous projection of 7.8%, following improvement in private consumption and merchandise exports.
However, it has cut its forecast to 3.2% compared to a previous projection of 3.6%.
BoT also revised down its projection of foreign tourist arrival next year to 5.5 million, from nine million earlier.
The 2021 figure was revised down due mainly to delayed re-opening of the country. In 2019, Thailand received nearly 40 million visitors.
Meanwhile, Titanun said MPC was also concerned about the currency rally.
He said the committee would closely monitor developments in foreign exchange markets, consider the necessity of implementing additional appropriate measures, and continue to expedite Thailand’s new foreign exchange ecosystem.
“The committee will monitor the adequacy of government measures and various risks following the new wave of the domestic outbreak in deliberating monetary policy going forward,” he said.
The latest outbreak saw more than 1,000 infections, mostly among migrant workers from Myanmar at a seafood market in Samut Sakhon, southwest of Bangkok. – Bernama, December 23, 2020
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