BANGKOK, Thailand – Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput has revealed that the agency is prepared to adjust its policy interest rate in response to changing economic conditions. The Monetary Policy Committee (MPC) is closely monitoring the economy, focusing on three key factors: economic growth, inflation, and financial stability.
Recent discussions at the MPC meeting indicated that while the current economic outlook aligns with expectations, there are risks in certain areas, such as a decline in private investment. Despite these risks, the overall economic projections remain consistent with previous assessments.
Inflation is gradually approaching the lower end of the BOT’s 1-3% target range. Maintaining low inflation expectations is a priority, and the BOT does not foresee deflation or a slowdown in consumption.
Financial stability remains a concern as tightening monetary conditions, including reduced bank lending, have started to impact the broader economy. The BOT is ready to adjust the policy interest rate if these financial linkages create more significant disruptions than anticipated.
The central bank remains flexible in its approach to monetary policy and is prepared to respond to shifts in the economic landscape to ensure stability and growth. (NNT)
