The Monetary Policy Committee (MPC) has decided to keep the policy rate at 0.50%.
The Committee assessed that the Thai economy will continue to expand and have a better chance of recovery than previously assessed, from domestic demand and an increase in the return of foreign tourists.
MPC expects the Thai economy to continue to recover. It will grow by 3.3% in 2022 and 4.2% in 2023 as private consumption recovers better than expected. Especially in the service category Including the number of foreign tourists, which tends to increase further due to the faster opening of the country in Thailand and abroad.
In addition, the labor market and household income showed signs of improvement in line with the relaxation of epidemic control measures and continued economic recovery. While the COVID-19 outbreak and the conflict between Russia and Ukraine has limited impact on the Thai economy.
Headline inflation in 2022 is projected to be 6.2% and 2023 at 2.5%. Inflation is likely to exceed the target range throughout 2022 following higher global energy prices and higher domestic transmission costs.
The Committee assessed that the economic recovery and inflation risks were clearer. Therefore, it is necessary to implement a more accommodative monetary policy at the present level in the future.
“The Committee will consider the appropriate time to gradually raise the policy interest rate in line with changing trends and risks of the economy and inflation,”
the MPC said.