Bangkok – The Bank of Thailand (BoT) is showing no concerns over the fluctuations of the Thai Baht as Thailand holds sufficient foreign reserves to safeguard the economy against the occasional outflow of foreign capital.
Even though the Thai Baht has been fluctuating due to monetary policy changes in the UK, the United States and Europe, there has been no indication from the BoT that there is a significant impact on the economy. Both private and public debt remains low despite the fluctuations.
Meanwhile, the Monetary Policy Committee has revised this year’s economic growth up from 4.1% to 4.4% given tourism and export growth. To further support the forecast, the Cabinet has also agreed to maintain the VAT rate at 7%.
The Ministry of Commerce has also forecast that the economy in the second half of this year will improve. Prices of cassava and corn feed will continue to rise although prices of certain farm goods remain low.