Thai economic recovery intact, financial conditions tight: central bank

By Reuters   October 10, 2023 | 08:43 pm PT
Thai economic recovery intact, financial conditions tight: central bank
Thailand's central bank is seen at the Bank of Thailand in Bangkok. Photo by Reuters/Jorge Silva
Financial conditions in Thailand tightened but were still supportive of an ongoing economic recovery, minutes of the central bank's Sept. 27 monetary policy meeting showed on Wednesday.

The committee would take into account the growth and inflation outlook, including upside risks from government economic policies when deliberating monetary policy going forward.

On Sept. 27, the Bank of Thailand's policy committee unexpectedly voted unanimously to increase the one-day repurchase rate THCBIR=ECI by a quarter point to 2.5%, the highest in a decade, saying economic growth and inflation should pick up next year.

Southeast Asia's second-largest economy has been hobbled by slackening global growth, led by its main trading partner China, and falling investor confidence due to a protracted period without a government following elections in May.

Thailand's economy grew 1.8% in the April-June period of the year and 0.2% in the quarter, sharply slowing from the previous three months.

Thailand's central bank cut its 2023 economic growth forecast to 2.8% from 3.6% projected earlier but raised its 2024 growth outlook to 4.4% from 3.8%. Last year's growth was 2.6%.

go to top