In a unanimous decision, Thailand’s Monetary Policy Committee (MPC) has opted to maintain the policy interest rate at 2.50% per annum, signaling an optimistic outlook for the country’s overall economic recovery. While acknowledging an anticipated deceleration in the export sector and related production, the MPC foresees a more balanced expansion in the Thai economy for 2024 and 2025, propelled by increased domestic demand, travel, and a rejuvenation of the export sector.
However, the MPC has revised its growth projection for Thailand’s economy in 2023 downward, now estimating a growth rate of 2.4%. This marks a reduction from the earlier forecast of 2.8% for the current fiscal year.
Looking ahead to 2024, the MPC projects a growth rate of 3.2% for the Thai economy. Yet, with the potential inclusion of outcomes from the digital currency initiative, the growth forecast could escalate to 3.8%. Despite this, these figures reflect a downward revision from the previous MPC estimation during its last session, which had set the growth rate at 4.4%.
The decision to maintain the policy interest rate at its current level signifies the MPC’s commitment to supporting economic stability while navigating challenges and uncertainties. The revised GDP forecasts indicate a cautious yet proactive approach by Thailand’s monetary authorities in aligning monetary policies with evolving economic dynamics to ensure sustained growth and stability.