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Thai central bank to cut 2016 growth outlook

Tuesday, March 8, 2016 - 15:02

[BANGKOK] Thailand's central bank plans to lower its 2016 economic growth forecast from 3.5 per cent seen in December due to increased downside risks, its governor said on Tuesday.

Governor Veerathai Santiprabhob gave no other details on the forecast. The central bank reviews economic foreasts on March 23 but will not release them until March 31.

He also told reporters that fiscal policy is a more effective tool than monetary policy.

The central bank has left its benchmark interest rate unchanged at 1.50 per cent, near a record low, since April last year. It next reviews policy on March 23, together with economic forecasts.

In December, it cut its 2016 economic growth estimate to 3.5 per cent from 3.7 per cent and forecast no growth in exports.

Southeast Asia's second-largest economy has yet to regain traction since the army took power in May 2014.

REUTERS

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