BANGKOK – The Bank of Thailand (BoT) has maintained its policy rate at a record low of 0.5% to support economic recovery amid a surge in Covid-19 infections.
The BoT’s monetary policy committee (MPC) unanimously voted to maintain the benchmark interest rate after a sixth straight meeting.
In a statement today, MPC secretary Titanun Mallikamas said the economic impact of the country’s latest Covid-19 outbreak is expected to be less severe than last year.
“The committee expects the economy to expand somewhat lower than the previous forecast.
“Nonetheless, the prospect remains highly uncertain and will depend mainly on the new wave of infections and subsequent containment measures,” he said.
Thailand, which previously received plaudits for its relatively successful containment of the virus, has been under a fresh wave of infections since December last year that started at a seafood market in Samut Sakhon province.
The kingdom recorded 795 new Covid-19 cases and zero deaths over the last 24 hours, bringing total infections in the kingdom to 21,249 cases and 79 fatalities.
Titanun said the continuity of government measures and policy coordination among government agencies would be critical to support economic recovery.
“The government should expedite budget disbursements under the restoration plan once the new wave of the outbreak becomes well contained.
“Also, the government should implement supply-side policies to support business restructuring and upskilling of labour, which would help support sustainable economic recovery,” he said.
On movements of the baht, Titanun said it was moving in line with regional currencies.
“The committee will closely monitor developments of the baht, consider the necessity of implementing additional appropriate measures, and continue to expedite the new foreign exchange ecosystem,” he said.
Last week, the government slashed its 2021 gross domestic product forecast from 4.5% predicted last October to 2.8% this year. – Bernama, February 3, 2021
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