BANGKOK, 11th April 2018 (NNT) – The Bank of Thailand (BOT) has announced its plan to keep the monetary policy loose following continued expansion of the Thai economy in March.

Assistant Governor of the BOT Jaturong Jantarangs reported today that the Thai economy continued to grow well in March, thanks to the global economic recovery, which also helped boost the economies of our trading partners. Nonetheless, he warned of some risk factors, especially the trade war between the United States and China, which he said could indirectly impact Thai products in China’s supply chain, such as steel, aluminum, washing machines and solar cell panels.

For 2018, Mr Jaturong projected that Thai export growth will reach 7 percent, an increase from the 4 percent estimate made at the end of last year. He also expected tourism, domestic consumption and private investment to continue to expand. However, government spending will likely fall short of expectations due to the new law governing state procurement while investment by state enterprises might go as planned despite delays in some projects.

The Assistant Governor confirmed that the central bank will continue to relax the country’s monetary policy by maintaining the benchmark interest rate at 1.5 percent. Such a move is expected to allow the inflation rate to edge up from 0.7 percent in 2017 to 1.0 percent this year and annual economic growth to reach 4.1 percent.

National News Bureau Of Thailand | BOT to maintain relaxed monetary policy