The Bank of Thailand’s Monetary Policy Committee (MPC) maintained the policy rate at 0.50% and revised its forecast on the gross domestic product decline from -8.1% to -7.8% this year.
Titanun Mallikamas, Bank of Thailand’s assistant governor supervising the Monetary Policy Group, said the committee resolved unanimously to keep the policy rate unchanged because it expected a slightly less decline of the Thai economy and the headline inflation to gradually rise next year.
The committee viewed that financial institutions should quickly restructure household and business debts regarding more risks in the financial system of the country.
The MPC predicted that Thailand would welcome 6.7 million visitors this year and 9 million next year. The committee revised its forecast down from its earlier estimation of 8 million visitors this year and 16 million next year.
The MPC expected that the Thai GDP would slowly recover and take at least two years to return to its pre-COVID level late last year. The government needed to improve its economic stimulus measures, promote employment and restructure the national economy, Mr Titanun said. (TNA)