BANGKOK: Thailand’s central bank left its key interest rate unchanged at a record low and upgraded its GDP outlook slightly as Southeast Asia’s second-largest economy showed some signs of recovery from the coronavirus jolt.
The bank said private consumption and investment were likely to improve, but it expected a record contraction in gross domestic product this year, with the economy taking at least two years to return to pre-pandemic levels as the key tourism industry reels from a ban on foreign visitors.
The Bank of Thailand’s monetary policy committee voted unanimously to keep the one-day repurchase rate steady at an all-time low of 0.50 per cent for a third straight meeting, as was widely expected.
“The committee viewed that the extra accommodative monetary policy since the beginning of the year as well as fiscal, financial, and credit measures additionally announced, helped alleviate adverse impacts and would support the economic recovery after the pandemic subsided,” it said in a statement.
Phacharaphot Nuntramas, an economist with Krung Thai Bank who predicts a contraction of 8.8 per cent this year, said, “It’s a surprise that their outlook was better this year. We don’t know what signs the BOT saw.”
While the bank raised its 2020 GDP forecast, it still expects the economy to shrink by a record 7.8 per cent in 2020 versus a previous forecast for an 8.1 per cent contraction. — Reuters
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