The Bank of Thailand (BOT) monetary policy committee (MPC) unanimously voted to maintain the policy rate at 0.50 percent, announced Titanun Mallikamas, Secretary of the Monetary Policy Committee (MPC).
The Committee assessed that the Thai economy in 2021 and 2022 would expand close to the projection from the previous meeting, but uncertainties surrounding the economic outlook remained high. Nonetheless, progress on vaccination and earlier-than-expected relaxation of the containment measures would help support the economy in the period ahead.
The most important issue for the Thai economy at present was the implementation of public health measures that would help facilitate the economic and income recovery.
The Committee viewed that government measures should be expedited to support the economic recovery. Despite some progress on financial measures, liquidity distribution and debt restructuring should be expedited further for those who were affected.
The Thai economy was projected to expand 0.7 and 3.9 percent in 2021 and 2022 respectively, largely unchanged from the August projection.
Although the economy in the third quarter of 2021 was affected by the containment measures and a slowdown in exports, significant progress on vaccination and earlier-than-expected relaxation of the containment measures would help restore private sector confidence and boost private consumption for the rest of 2021. (TNA)