Thai economy expected to grow in second half of 2024: central bank minutes
THAILAND’S economy is expected to grow in the second half of the year but uncertainties remain, minutes of the Bank of Thailand’s June 12 monetary policy meeting showed on Wednesday.
The current policy rate was consistent with the growth and inflation outlook, the minutes said.
At the June 12 meeting, the monetary policy committee voted 6-1 to hold the one-day repurchase rate steady at 2.50 per cent for a fourth consecutive meeting. One member favoured a quarter-point cut.
The next rate review is on Aug 21.
The committee assessed risks to the Thai economy had become less tilted to the downside, but they expressed concerns over the “K-shaped” economic recovery, where different sectors recover from a slowdown at different rates, the minutes said.
“Although the Thai economy was expected to expand in the latter half of the year, some uncertainties remained, including the recovery in manufacturing and merchandise exports, as well as the impacts of fiscal stimulus,” the minutes said.
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The central bank has forecast economic growth of 2.6 per cent this year and 3 per cent next year. Last year’s growth of 1.9 per cent lagged regional peers.
The central bank said it expected headline inflation to be below the target range of 1 per cent to 3 per cent in the third quarter before returning to the range in the fourth quarter of 2024.
In materials prepared for a policy forum on Wednesday, the central bank said the current inflation target range was functioning well, with medium-term inflation expectations still consistent with the target.
The central bank said exports were showing signs of recovery, while industrial manufacturing was showing signs of bottoming out. REUTERS
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