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 economic outlook highly uncertain, fiscal policy should continue - central bank

02/17/2021 | 12:40am EDT
FILE PHOTO: FILE PHOTO:  Thailand's central bank is seen at the Bank of Thailand in Bangkok

BANGKOK (Reuters) - Thailand's economic outlook remained highly uncertain with large downside risks, so limited monetary policy room should be preserved to be used at the most effective time, minutes https://www.bot.or.th/English/MonetaryPolicy/MonetPolicyComittee/ReportMPC/Minutes/MPC_Minutes_12021_gt3vznma.pdf from the central bank's last policy meeting showed on Wednesday.The public sector should implement sufficient targeted and front-loaded measures to support an economic recovery after a recent coronavirus outbreak, the minutes said.

On Feb. 3, the Bank of Thailand (BOT)'s committee members voted unanimously to keep the one-day repurchase rate unchanged at 0.50% for a sixth straight meeting, after three cuts in the first half of 2020 to mitigate the impact of the pandemic.

"The problem facing the Thai economy was less about the level of the policy interest rate as lending rates and bond yields were already at a record low," the minutes said, adding that banking system liquidity remained ample.

Southeast Asia's second-largest economy could expand this year at a slower pace than the 3.2% previously projected and the recovery among sectors would be uneven and increase labour market vulnerability, the minutes said.

"In the near term, the economic recovery would depend on the resolution of the recent outbreak and the contemporaneous fiscal support," the minutes said.

The BOT next reviews monetary policy on March 24, when it will also offer updated economic projections.

Bank of Thailand Governor Sethaput Suthiwartnarueput told TNN News that the economy is now likely to return to pre-pandemic levels in the third quarter of 2022.

He said the economy could grow at the upper 2% levels this year, but this would largely depend on a recovery in tourism.

The committee felt the recovery could be impacted by rapid rises in the baht and would consider measures as necessary to ensure "exchange rate movements would not hinder the economic recovery".

Thailand largely contained its COVID-19 outbreak by mid-2020, but new infections had slowed domestic activity as the key tourist sector founders.

The economy contracted 6.1% last year, the deepest fall in 22 years, prompting the government to cut its growth outlook this year to 2.5-3.5% from 3.5-4.5%.

(Reporting by Orathai Sriring; Editing by Ed Davies)

By Orathai Sriring


© Reuters 2021
Latest news "Economy & Forex"
04:04pUk looks to remove china’s cgn from nuclear power projects - ft
RE
02:13pCredit Suisse settles spying case with former star banker
RE
02:01pTesla restarts model s deliveries after a week-long hold - electrek
RE
01:56pU.s. cdc says 163,025,726 individuals have been fully vaccinated against covid-19 as of july 25 vs 162,725,812 individuals as of july 24
RE
01:56pU.s. cdc says 188,472,188 individuals have received at least one dose of covid-19 vaccine as of july 25 vs 187,982,826 individuals as of july 24
RE
01:55pU.s. cdc says administered 394,948,975 doses of covid-19 vaccine as of july 25 vs 341,039,972 doses administered as of july 24
RE
01:54pU.s. cdc says delivered 394,948,975 doses of covid-19 vaccine as of july 25 vs 394,936,815 doses delivered as of july 24
RE
01:05pEgypt registers primary surplus of 1.4% of GDP in FY 2020-2021 - statement
RE
12:58pUMWA UNITED MINE WORKERS OF AMERICA : Yogi Muise, cornerstone member of Cape Breton's Men of the Deeps, has died
PU
12:45pRepublican lawmaker says public transit dispute holding up U.S. infrastructure bill
RE
Latest news "Economy & Forex"