Thailand’s economy had bottomed out in the third quarter of 2021, the central bank said Wednesday, keeping its key interest rate unchanged to support recovery of the nation’s battered economy.
The bank’s monetary policy committee (MPC) unanimously voted to hold the policy interest rate at a record low of 0.5 per cent, MPC secretary Piti Disyatat said in a statement.
The rate has been maintained for a 12th consecutive meeting, as broadly expected. It is expected to be on hold through 2022, according to economists from a Reuters poll.
The Thai economy has “entered the recovery phase following the relaxation of containment measures and the reopening of the country,” said Piti. The downside risks to the economic projection also decreased in light of accelerated vaccination.
Piti said the bank still kept its economic projection the same as last time in September at 0.7-per-cent growth for 2021 and 3.5-per-cent growth for 2022.
However, the central bank warned that ‘the fragile recovery would remain subject to uncertainties,’ while headline inflation has risen temporarily due to the global energy prices.
“Headline inflation would remain within the target,” he noted.
The bank pointed out that the government measures would be critical to support the economic recovery.
“Public health measures should strike a balance between containing the outbreak and supporting the recovery of economic activities particularly after the re-opening of the country,” the statement said.
