The Bank of Thailand’s Monetary Policy Committee (MPC) has announced to maintain the policy rate at 2.50 percent after its meeting on Wednesday.
Mr. Piti Disyatat, Secretary of the MPC said the committee voted 5 to 2 to maintain the policy rate at 2.50 percent. Two MPC members voted to cut the policy rate by 0.25 percentage point.
The Thai economy is projected to slow in 2024 from exports and manufacturing activity amid softening global demand and moderating growth in China. Structural headwinds are restraining merchandise exports and tourism more than expected, the BoT said in its statement.
Meanwhile, domestic demand continues to expand and remains a key driver of the economy. Inflation stays at a low level and should gradually pick up towards the target range albeit at a slower-than-expected pace.
In the Committee’s assessment, recent growth slowdown owes primarily to moderating momentum in the external sector, which partly has structural causes.
At the same time, private consumption growth remains robust. The current policy interest rate is consistent with preserving macro-financial stability, a key foundation for sustainable growth in the longer term. (TNA)
