The Bank of Thailand maintains interest rate at 2.50%, projecting 2.6% and 3% economic growth in 2024 and 2025 driven by domestic demand and tourism. Committee addresses high household debt concerns.
Monetary Policy Decision
The Bank of Thailand has decided to maintain its key interest rate at 2.50%, despite calls for a rate cut to boost the economy. The central bank is confident in the economy’s convergence to its potential and stability. It predicts growth of 2.6% in 2024 and 3% in 2025, driven by domestic demand and tourism.
Economic Growth Forecast
The central bank projects economic growth of 2.6% in 2024 and 3% in 2025, supported by strong domestic demand, ongoing tourism recovery, and increased government spending. The baht has depreciated against the US dollar, with stable overall financial conditions. Measures are in place to address credit access issues, particularly for SMEs, to support economic growth further.
Household Debt Concerns
The Monetary Policy Committee is wary of high household debt levels and advocates for credit growth in line with debt reduction for financial stability. It supports measures to align lending with borrowers’ repayment capacity and backs debt restructuring for those facing repayment difficulties. Targeted initiatives, such as credit guarantee schemes for SMEs, aim to enhance credit access and spur economic growth. The committee will continue to monitor economic developments for future monetary policy deliberations.
Source : Bank of Thailand holds key interest rate unchanged at 2.50%