Thai economic growth seen uneven and below potential: central bank minutes
Growth is expected to be about 2 per cent this year
Add BT as a preferred source
[BANGKOK] Thailand’s economy is projected to grow below its potential and unevenly across sectors, the minutes of the Bank of Thailand’s Feb 25 policy meeting showed on Wednesday.
At the meeting, the monetary policy committee unexpectedly cut the one-day repurchase rate by 25 basis points to 1 per cent, to support growth.
Manufacturing and tourism competitiveness were declining, the minutes said.
The committee was concerned by the baht’s misalignment with economic fundamentals and said a policy rate of 1 per cent was sufficiently accommodative and consistent with the outlook.
Growth is expected to be about 2 per cent this year, although Governor Vitai Ratanakorn has said he is aiming for as high as 2.7 per cent.
On March 4, Vitai said growth could drop by 0.1 to 0.2 percentage points in 2026 due to conflict in the Middle East, and said policy adjustments and additional financial measures could be rolled out as needed.
Navigate Asia in
a new global order
Get the insights delivered to your inbox.
South-east Asia’s second-largest economy, which has lagged regional peers since the pandemic, expanded 2.4 per cent last year. REUTERS
Decoding Asia newsletter: your guide to navigating Asia in a new global order. Sign up here to get Decoding Asia newsletter. Delivered to your inbox. Free.
Share with us your feedback on BT's products and services
TRENDING NOW
On the board but frozen out: The Taib family feud tearing Sarawak construction giant apart
Is it time to scrap COE categories for cars?
Thai and Vietnamese farmers may stop planting rice because of the Iran war. Here’s why
As more Asean states turn to Russia for fuel, will Moscow boost its influence in the region?
