Econ Digest: Thailand to Support Tech Based Economy, BOT Holds Fire Again

Thailand will support digital technology to help build a sustainable and broad-based economy, its finance minister said on Wednesday.

However, new innovation should not impact the country’s financial stability, Finance minister Arkhom Termpittayapaisith told a business seminar.

Earlier today, The Bank of Thailand (BOT) kept is one-day repurchase rate at 0.50% for the 14th straight meeting after three rates cut in 2020.

“The committee assessed that the Thai economy in 2021 would expand faster than previously projected, and the recovery would continue into 2022 driven by higher merchandise exports, as well as a higher number of foreign tourist arrivals,” the BOT said in a statement after its first policy meeting of the year.

“However, the recovery would remain fragile and uneven across sectors, especially in tourism which was below pre-pandemic levels,” it sad.

Although inflation has hit a nine-month high of 3.23% in January which is over BOT’s target level of 1-3%, it expects inflation would return to target level this year.