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The Bank of Thailand's Monetary Policy Committee unanimously voted to raise the policy interest rate by 25 basis points from 1.75% to 2%, in line with market expectations.
#Thailand #กนง #ดอกเบี้ย
#Thailand #กนง #ดอกเบี้ย
The MPC said the Thai economy is expected to continue expanding, driven mainly by tourism and private consumption. It also anticipates a gradual recovery in exports.
According to the commerce ministry, exports decreased by 5.2% YoY to $92 billion for the first 4 months of 2023.
According to the commerce ministry, exports decreased by 5.2% YoY to $92 billion for the first 4 months of 2023.
The MPC noted that headline inflation has slowed down, but core inflation remains elevated.
In April, headline inflation rose by 2.67% YoY, compared to March's 2.83% increase.
Core inflation, on the other hand, increased by 1.66% YoY in April, down from 1.75% YoY in March.
In April, headline inflation rose by 2.67% YoY, compared to March's 2.83% increase.
Core inflation, on the other hand, increased by 1.66% YoY in April, down from 1.75% YoY in March.
The MPC identified inflationary risks stemming from greater demand pressures due to expanding economic activity and higher cost pass-through resulting from supply pressures.
Therefore, the committee deems a continuation of gradual policy normalization appropriate, considering the growth and inflation outlook, and voted to raise the policy rate by 0.25%.
The MPC projects economic growth to reach 3.6% and 3.8% in 2023 and 2024, respectively.
A significant driving force behind this is the broad-based recovery in tourism, which should stimulate employment and labor income, thereby sustaining private consumption, they said.
A significant driving force behind this is the broad-based recovery in tourism, which should stimulate employment and labor income, thereby sustaining private consumption, they said.
Merchandise exports are recovering broadly and in line with expectations, and they are expected to further improve as global economic activity moderately expands, according to the MPC.
The committee also acknowledges the upside risks to domestic growth, partly due to forthcoming government economic policies.
However, it is important to monitor the uncertain economic and monetary policy outlook of major economies, they said.
However, it is important to monitor the uncertain economic and monetary policy outlook of major economies, they said.
The MPC said inflation is expected to continue declining gradually.
Headline inflation has already returned to the target range, and it is projected to be 2.5% and 2.4% in 2023 and 2024, respectively. This is primarily attributed to the easing of electricity and oil prices.
Headline inflation has already returned to the target range, and it is projected to be 2.5% and 2.4% in 2023 and 2024, respectively. This is primarily attributed to the easing of electricity and oil prices.
Additionally, core inflation is projected to stabilize at 2% in 2023 and 2024, an elevated level relative to the past.
The MPC stated that they anticipate a steady economic expansion but emphasize the need to monitor upside risks to inflation.
The MPC stated that they anticipate a steady economic expansion but emphasize the need to monitor upside risks to inflation.
The MPC also added that they are prepared to adjust the size and timing of policy normalization if the evolving growth and inflation outlook differs from the current assessment.
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