You are here

Thai economic recovery may not be as strong as expected: central bank

Friday, December 19, 2014 - 13:06
33187983990.jpg
Thailand's central bank said on Friday it expected the economy to recover next year, driven by government spending, but gains might not be as strong as expected.

[BANGKOK] Thailand's central bank said on Friday it expected the economy to recover next year, driven by government spending, but gains might not be as strong as expected.

Bank of Thailand Deputy Governor Paiboon Kittisrikangwan also told reporters that the central bank must reserve monetary policy "space" in case a rate change was needed.

On Wednesday, the central bank's monetary policy committee voted 5-2 to hold the key interest rate at 2.0 per cent, where it has been since March.

Wednesday's meeting also cut the BOT's economic growth forecasts, which have been for 1.5 per cent expansion this year and 4.8 per cent in 2015. The new forecasts will be announced on Dec 26.

Paiboon also said the baht was moving in line with regional currencies but the central bank had measures in place to curb any excessive movements.

REUTERS