Thailand's Central Bank Maintains Interest Rate At 2.50 Pct

By Kenny Teng Khoon Hock

BANGKOK, Aug 21 (Bernama) -- The Bank of Thailand’s Monetary Policy Committee (MPC) has voted to maintain the policy rate at 2.50 per cent, saying that the nation’s economy is on the right recovery track.

MPC secretary, Piti Disyatat said the MPC believes that Thailand’s economy is likely to expand, thanks to surging tourism and rising domestic demand, though exports recovery remains slow.

He said the MPC expect the inflation rate to return to the targeted frame late this year.

"The majority of the MPC members see the current policy rate as still at a level in line with the improving economic growth potential," he said in a statement today.

He said the committee considers it crucial to closely monitor the impact of declining credit quality on borrowing costs and overall credit growth, as these could affect economic activity.

Meanwhile, Piti said the MPC recognises the challenges faced by small and medium enterprises (SMEs) in accessing credit, and supports measures to address this issue, including credit guarantee schemes. 

“Additionally, the committee supports the Bank of Thailand’s debt restructuring policy through financial institutions, a targeted measure that partly facilitates household debt deleveraging," he said.

On Monday, the National Economic and Social Development Council (NESDC) reported that Thailand's gross domestic product (GDP) expanded by 2.3 per cent in the second quarter of 2024 (2Q 2024), accelerating from 1.6 per cent in 1Q 2024.

The NESDC attributed the positive growth primarily to a 4.0 per cent increase in private consumption, a 0.3 per cent rise in government spending and a 1.9 per cent expansion in exports during the quarter.

-- BERNAMA