Thailand: BoT keeps policy rate at 0.5%, bullish about 4Q21 growth

• On 29 Sep 21, the Bank of Thailand’s Monetary Policy Committee voted unanimously to hold the one-day repurchase rate at a record-low 0.5% for an 11th straight meeting. It also maintained GDP growth projections for 2021 and 2022 at the existing levels of 0.7% and 3.9%, respectively.
• “The committee viewed that financial measures would be more effective than a further reduction in the policy rate, which was already low,” the BoT said in a statement after its policy meeting.
• The central bank also believes the economy bottomed out in 3Q21 and should gradually pick up from 4Q21 thanks to progress in the vaccination rollout and earlier than expected relaxation of the government’s containment measures.
• The central bank adjusted some economic data, raising private consumption for next year to 5.7% growth, up from 3.4%. The committee also downgraded private consumption in 2021 to zero from a 2.5% expansion forecast earlier.
• Foreign tourist arrivals were expected to recover slowly, with the figure for 2021 slashed from 700,000 to 200,000. Arrivals for 2022 were cut from 10 million to 6 million.
• Once again, the BoT underscored the important of fiscal policy in facilitating economic recovery, and added that monetary policy should remain accommodating as well.

External Link : https://www.bangkokpost.com/business/2189839/bot-sees-uptick-in-fourth-quarter

External Link : https://www.bangkokpost.com/business/2189679/bank-of-thailand-holds-key-rate-at-record-low-as-covid-19-outbreak-eases