Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Settings
Settings
Dynamic quotes 
OFFON
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Thai central bank warns virus outbreak could hurt economic outlook

01/05/2021 | 10:44pm EDT
FILE PHOTO: The Bank of Thailand logo is seen in Bangkok

BANGKOK (Reuters) -Thailand's economic outlook would be substantially affected by a surge in coronavirus cases, minutes of the central bank's last policy meeting showed on Wednesday, as the Bank of Thailand (BOT) saw a need to preserve limited policy room.

On Dec 23, the central bank's monetary policy committee left the one-day repurchase rate at a record low of 0.50% for a fifth straight meeting after three cuts earlier in 2020 to support a coronavirus-hit economy.

The central bank saw a need to preserve limited policy room to use at the most effective time, as the situation related to a new wave of coronavirus infections remained highly uncertain, the minutes https://www.bot.or.th/English/MonetaryPolicy/MonetPolicyComittee/ReportMPC/Minutes/MPC_Minutes_82020_adz7iiky.pdf said.

"Thailand's economic projection would be substantially affected in the case of a surge in new infections," the minutes warned.

"The committee thus saw a need to closely monitor development and assess the adequacy of government measures".

At the December meeting, the BOT cut its 2021 GDP growth forecast to 3.2% from 3.6%, while predicting a 6.6% contraction for 2020.

After managing to largely contain community spread of the virus for months, a cluster of cases in December linked to migrant workers and a gambling den has led to infections in over half of Thailand's provinces.

New restrictions aimed at fighting the outbreak, the country's most serious yet, will likely derail the economy's nascent recovery, with some analysts lowering this year's growth outlook to below 3%.

The committee was also concerned that a rapid rise of the baht could affect a fragile recovery, the minutes said.

A new foreign exchange ecosystem should be expedited to address structural problems in the currency market and encourage more balanced capital flows, they said.

The new ecosystem would allow Thais to invest abroad more easily and in larger amounts, increase flexibility in foreign exchange risk management for entrepreneurs, and promote competition among foreign exchange service providers, the minutes said.

(Reporting by Orathai SriringEditing by Ed Davies)

By Orathai Sriring


© Reuters 2021
Stocks mentioned in the article
ChangeLast1st jan.
EURO / THAI BAHT (EUR/THB) -0.02% 39.041 Delayed Quote.6.57%
US DOLLAR / THAI BAHT (USD/THB) 0.00% 32.91 Delayed Quote.9.48%
Latest news "Economy & Forex"
03:32aWINNER'S BAG : Xander Schauffele, Olympic Games
PU
03:22aG20 OF TWENTY FINANCE MINISTERS AND CENTRA : Third meeting of the G20 Sustainable Finance Working Group (SFWG)
PU
03:02aMINISTRY OF FINANCE OF REPUBLIC OF INDIA : GST Revenue collection for July 2021
PU
03:00aChina securities watchdog seeks closer cooperation with U.S
RE
02:12aFOREIGN OFFICE OF FEDERAL REPUBLIC OF GERMANY : 01.08.2021 Article
PU
01:11aChina new home price growth slows in July - private survey
RE
12:22aU.S. COVID-19 eviction ban expires, leaving renters at risk
RE
12:22aDEPARTMENT OF PRIME MINISTER AND CABINET OF NE : Speech to Dawn Raids Apology
PU
12:02aMUBADALA PETROLEUM LLC : Launches its 2020 Sustainability Report, Highlighting its Commitment to ESG Principles
PU
08/01U.S. COVID-19 eviction ban expires after Congress fails to act
RE
Latest news "Economy & Forex"