The Bank of Thailand’s Monetary Policy Committee (MPC) agreed unanimously on Wednesday to leave the benchmark interest rate unchanged at 1.25%, after its assessment that economic growth will be less than projected.
The central bank’s assistant governor Tittanan Mallikamat said that the MPC has also lowered the growth rate forecast for 2019 from 2.8% from 2.5% and growth for next year from 3.3% to 2.8%, due to heightened external risks, including export contraction which impacts domestic employment and consumption.
The MPC has predicted a more stable global economic outlook next year, which will drive an improvement in Thai exports and economic growth rate, albeit lower than the potential, said Mr. Tittanan.
Inflation, however, is expected to remain low this year and next, while the monetary system remains stable.
The central bank has also expressed concern over the strength of the baht.
