Thailand’s central bank on Wednesday is convinced that the country’s economy will continue to grow as the policy rate moves closer to a level consistent with long-term stability, buoyed by tourism and private consumption.
According to minutes from a monetary policy meeting held by the Bank of Thailand on August 2, members of the committee believe the economy will grow toward its potential level on the strength of tourism and private consumption, and that short-term declines in exports should be followed by growth as the global economy recovers.
However, it was anticipated that public consumption and investment would fall from the previous year as a result of the slowed budgeting process, before rising again in 2024.
The monetary policy committee unanimously voted on August 2 to raise its benchmark rates by 25 basis points, bringing an interest rate to 2.25%.
Some economists anticipate that the end of the tightening cycle will be signaled by the BOT’s next rate review on September 27. The benchmark interest rate has been increased by 175 basis points by the central bank since last August.