Log in
Show password
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Thai economy faces uncertainty, monetary policy to stay accommodative

10/18/2021 | 03:54am EST
FILE PHOTO: Thailand's central bank is seen at the Bank of Thailand in Bangkok

BANGKOK (Reuters) - Thailand's central bank said on Monday there was high uncertainty facing the economy and monetary policy would remain accommodative to support a recovery from the country's most prolonged outbreak of the coronavirus.

The Bank of Thailand (BOT) has forecast economic growth of 0.7% this year, bottoming out in the third quarter and growing 3.9% in 2022.

The economy contracted 6.1% last year, with the key tourism sector still struggling.

Thailand's economic recovery may still lag others and "next year, our baseline is that the financial sector and monetary policy must remain supportive," Assistant Governor Piti Disyatat told an analyst meeting.

The BOT has left its policy rate unchanged at a record low of 0.50% since mid-2020 after cutting it three times earlier that year to help the economy. It has since focused on financial and debt relief measures.

The BOT has fully implemented key monetary policy tools, including interest rates and overall financial conditions, Piti said, adding more targeted fiscal and financial measures would be key.

Monetary policy is a blunt tool while financial measures are a facilitator that has fully been supportive, he said, adding low inflation also gave "a degree of freedom to us to remain accommodative, to some extent".

At a separate seminar, Finance minister Arkhom Termpittayapaisith said monetary policy must support fiscal policy and ensure sufficient liquidity in the system, as government stimulus measures will generally increase inflation.

"In a crisis like this, monetary policy must stop doing its job for a while to let fiscal policy work," he said.

The economy next year will be driven by domestic consumption and a vaccine rollout but the labour market remains fragile with an expected 3.4 million unemployed or partially employed by year-end, said senior BOT director Chayawadee Chai-Anant.

Thailand will reopen https://www.reuters.com/world/asia-pacific/thailand-end-quarantine-some-vaccinated-visitors-nov-pm-2021-10-11 to more vaccinated foreign visitors next month.

The baht's volatility was in line with regional currencies and the BOT had acted to ensure it would not be an obstacle to economic recovery, said senior BOT director Sakkapop Panyanukul.

(Reporting by Orathai Sririn, Satawasin Staporncharnchai and Kitiphong Thaichareon; Editing by Martin Petty)

By Orathai Sriring and Satawasin Staporncharnchai

ę Reuters 2021
Latest news "Economy & Forex"
01:15pTesla ceo musk says end-of-quarter vehicle delivery blitzes will still be very intense, just slightly less than in past - tweet
01:14pJACK DORSEY : Twitter CEO Jack Dorsey hands reins to technology chief Agrawal
01:06pWall Street banks stick with return-to-work plans while monitoring Omicron situation
12:44pOil gains more than 3% on speculation Omicron-related drop overdone
12:28pBank of Portugal chief says country must use EU grants, reduce debt
12:25pU.S. SEC issues guidance on corporate share-based executive compensation
12:23pU.S. SEC issues guidance on corporate share-based executive compensation
12:22pDorsey's journey from microblogging pioneer to billionaire
12:16pFTSE Closes Higher as It Recovers Some Losses From Black Friday
12:12pTech rally lifts Wall Street from Omicron-driven rout
Latest news "Economy & Forex"