Thailand central bank is holding its policy rate steady, deeming it appropriate for the current economic landscape. However, the bank’s governor, Sethaput Suthiwartnarueput, emphasized their readiness to make adjustments if necessary due to escalating global risks and concerns over the Middle East conflict.
Sethaput Suthiwartnarueput addressed reporters, indicating that Southeast Asia’s second-largest economy is still on track to achieve its projected 2.8% growth this year. Nonetheless, he mentioned that third-quarter growth might be softer than initially expected.
The central bank had previously forecasted a 4.4% growth rate for 2024, but this may be subject to revision should there be changes in the government’s stimulus plan. It’s worth noting that the Thai economy expanded by 2.6% in the previous year.
Also Read: Srettha Thavisin Finance Portfolio: A Bold Move Amid Thailands Economic Slowdown
Sethaput also expressed concerns about the repercussions of the Middle East conflict, highlighting its complexity in terms of evaluating its impact. However, he maintained that the current policy rate remains suitable, stating, “The rate is appropriate for this period… But if the situation changes significantly from our forecasts, our set framework, there will be adjustments.”
Last month, the Bank of Thailand’s monetary policy council unexpectedly boosted the main interest rate by a quarter point to 2.50%, the highest in a decade. This was done since growth and inflation are likely to rise next year. On November 29, the bank’s policies will be reviewed. In order to lower inflation, the central bank has raised the rate by 200 basis points since August.
Sethaput noted that external causes and capital withdrawals have made the baht more volatile than other currencies. Since January, capital outflows totaled 308 billion baht ($8.53 billion), depreciating the baht by 4.4% against the US dollar.
Our Reader’s Queries
Does Thailand have a central bank?
The Bank of Thailand (BoT) has established a 1-3% inflation objective for 2024. However, this tightening has had a negative impact on the economy, as well as low-income individuals and small to medium-sized businesses, according to Srettha’s social media post on January 7th.
What is the National Bank of Thailand?
The Bank of Thailand is a public institution that aims to create a stable and sustainable macroeconomic and financial environment. Its ultimate goal is to improve the quality of life for Thai citizens in the long run. By fostering this environment, the Bank of Thailand hopes to enable citizens to achieve sustainable growth and prosperity.
What American Bank is in Thailand?
Citi’s journey in Thailand dates back to 1967. Fast forward to 1 November 1985, Citibank, N.A. was officially registered as a full-service branch. Today, Citi has established itself as one of the top international financial institutions in Thailand.
Who is the head of Thailand central bank?
Sethaput Suthiwartnarueput holds the esteemed position of being the 24th Governor of the Bank of Thailand. He is also a board member for the National Economic and Social Development Council, the Securities and Exchange Commission, and the Insurance Commission. His impressive portfolio speaks volumes about his expertise and experience in the financial sector.