“BOT Will Act if Economic Growth Worsens,” Says the Bank’s Governor “Veerathai”
“BOT Will Act if Economic Growth Worsens,” Says the Bank’s Governor “Veerathai”.
“BOT Will Act if Economic Growth Worsens,” Says the Bank’s Governor “Veerathai”.
26 พ.ย. 2562

Mr. Veerathai Santiprabhob, the Bank of Thailand’s governor, said that the Monetary Policy Committee (MPC) are ready to act if economic growth worsens, but, if possible, will avoid bringing the interest rates below zero.
 
“In the short term, we are ready to use monetary policy if needed,” said Mr. Veerathai during his visit to Laos in the weekend. “We are ready to act if growth fails to meet our expectations.”
Economists expect the MPC to maintain an interest rate at 1.25% throughout the remaining of this year while expecting more rate cuts in 2020.
“The key rate shouldn’t be negative, as it will create lots of structural problems,” asserted Mr. Veerathai in his perspective on taking the rate below zero.
 
Veerathai said the central bank is concerned about baht strength and is monitoring the situation closely as the year-end approaches, because it’s a period that tends to have a high volume of foreign-exchange transactions.
Inflation of 0.11% in October was the lowest since June 2017, well below the central bank’s 1%-4% annual target. Veerathai said inflation isn’t a big problem for Thailand at present but financial stability risk has become a challenge for monetary policy.
Currency strength and the U.S.-China trade war have pressured Thailand’s economy, which the national economic council said will expand 2.6% this year, the slowest pace since 2014.