Bank of Thailand Expects 3Q GDP to Grow at Least 3%, Sees Baht at “Acceptable” Level

The Bank of Thailand said on Wednesday that the economy is likely to expand by more than 3% in the third quarter and the baht remains at an “acceptable” level, with no significant impact on the economy.

Assistant Governor Piti Disyatat of the Bank of Thailand said on Wednesday at the Bloomberg Business Summit in Bangkok that the country would continue its gradual approach to monetary policy tightening since the economy was doing better than others on most measures.

When asked what to look for during the BOT’s next rate review on November 30, he answered, “You can expect the continuation of what we are doing.”

Compared to other Southeast Asian countries, Thailand’s central bank is the most dovish in the region. 

He noted that the baht had not changed much this year on a trade-weighted basis, and that the country’s high foreign-exchange reserves and economic recovery were due in large part to the reopening and return of international tourists. After falling to a 16-year low against the dollar in October, the baht rallied 7% this month, and its current value is “acceptable.”

Thailand’s economy may have grown more than 3% year on year in the third quarter, according to Piti, citing a stronger-than-expected recovery in international tourist arrivals.