Thailand’s central bank held its key interest rate at 1.5%, where it has been for nearly 2 years, whilst raising its economic growth forecast for 2017. Albeit, the decision by the Bank of Thailand (BOT) was widely expected, as the Monetary Policy Committee (MPC) voted unanimously to keep the one-day bond repurchase rate steady since April 2015. The central bank said monetary conditions would remain accommodative, despite improvement in economic activity and rising inflation, largely due to uncertainty about the global economy.
The BOT is relying on government spending to support economic growth, as it raises its 2017 economic growth forecast to 3.4% from 3.2% in December 2016. This is expected to be attributed by rising exports and domestic spending.
RFi Group data shows that retail banking consumers are most concerned over Thailand’s economic outlook over the next 12 months, with 54% stating that they are very concerned.
Source: RFi Group – Thailand Retail Banking Council (H2 2016)