The Bank of Thailand (BoT)’s Monetary Policy Committee voted unanimously to maintain the policy rate at 0.50 percent.
Titanun Mallikamas, Secretary of the MPC announced that the committee assessed that the Thai economy would gradually recover in line with the relaxation of COVID-19 containment measures in Thailand.
The committee viewed that the extra accommodative monetary policy since the beginning of the year as well as the fiscal, financial and credit measures additionally announced helped alleviate adverse impacts and would support the economic recovery after the pandemic subsided.
It would monitor risks of the second wave of the outbreak. Meanwhile, headline inflation would be negative this year but would return to the target in 2021 as previously assessed. Financial stability was more vulnerable given the economic outlook.
Financial institutes should expedite debt restructuring for households and businesses.
The government policies namely fiscal measures and financial and credit measures to support liquidity should continue to support employment and facilitate economic restructuring and recovery.
Regarding exchange rates, the baht appreciated over the most recent two weeks due to the depreciation of the US dollar. The committee would closely monitor developments in foreign exchange markets as well as assess the necessity of implementing additional appropriate measures. (TNA)
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