InfoQuest (June 9, 2022) - On June 8, 2022, the Monetary Policy Committee of Thailand (MPC) adopted the decision to keep the policy rate unchanged at 0.50 percent.
Thailand's economy is growing better than expected, thanks to a recovery in domestic demand and the return of foreign tourists. Inflation across the world is set to rise for longer than previously thought as such problems as the rise in fuel prices rise and cost transferring are worse than expected. Therefore, the necessity to maintain the current loose monetary policy will be diminished.
It's expected that Thailand's economy will grow 3.3 percent this year and 4.2 percent next year while its headline inflation will be 6.2 percent this year and 2.5 percent next year.
Thailand's financial system is generally stable, with sufficient capital and reserve currency of commercial banks and abundant liquidity in the financial system, but liquidity is unevenly distributed among various sectors. The MPC believes there is still a need to constantly implement debt restructuring measures to provide wide coverage and improve the long-term repayment capacity of debtors. Targeted supporting measures shall also be rolled out to help the vulnerable group. The commission will also gradually adjust the policy rate to keep in line with changing economic conditions and inflation.
Source: InfoQuest, by Thpl/Rachada Kongkhunthian, translated by Xinhua Silk Road
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