Thailand Monetary Policy February 2019


Thailand: Bank of Thailand stands pat in March

March 20, 2019

As expected by market analysts, the Monetary Policy Committee of the Bank of Thailand stood pat at its 20 March meeting and kept the policy rate at 1.75% in a unanimous vote. This contrasts the previous two votes to keep the policy rate unchanged on 6 February and 19 December, which had drawn opposition to holding rates.

The decision came on the back of largely unchanged inflation expectations and robust economic growth prospects. The chiefly unchanged inflation reflects the expectation of higher-than-previously-estimated energy and fresh food prices, while core inflation expectations were lowered slightly. Although subdued core inflation is generally a sign of weak domestic demand pressures, the Bank noted that more structural cost reductions attributed to lower core inflation. Some of these changes include “the expansion of e-commerce, rising price competition, and technological development which reduced the cost of production”. As such, the Bank still expects the Thai economy to grow at a robust, albeit slightly softer, pace compared to its previous forecast.

Looking forward, the Monetary Policy Committee judged “the current accommodative monetary policy stance would remain appropriate” in the short-term, while the Committee also pledged to continue monitoring developments relating to economic growth, inflation and the financial markets. The next monetary policy meeting is scheduled for 8 May.

FocusEconomics Consensus Forecast panelists expect the one-day repurchase rate to end 2019 at 1.89%. In 2020, the panel projects the monetary policy rate to end the year at 1.97%.

Author:, Economist

Sample Report

Looking for forecasts related to Monetary Policy in Thailand? Download a sample report now.


Thailand Monetary Policy Chart

Thailand Monetary Policy April 2019

Note: One-day repurchase rate, in %.
Source: Bank of Thailand (BoT).

Thailand Economic News

  • Thailand: Inflation stable in April at lower end of Central Bank’s target range

    May 16, 2019

    Consumer prices rose 0.44% in April over the previous month (March: 0.41% month-on-month) due to stronger price increases for food and non-alcoholic beverages, and apparel and footwear. Inflation was stable at March’s 1.2% in April, remaining within the Central Bank’s 1.0%–4.0% target range for the second time after several months of undershooting.

    Read more

  • Thailand: Bank of Thailand stands pat in May

    May 8, 2019

    In a unanimous vote at its 8 May meeting, the Monetary Policy Committee of the Bank of Thailand opted to leave the policy rate unaltered at 1.75% after the committee turned more dovish in the prior meeting.

    Read more

  • Thailand: Manufacturing output drops in March

    April 30, 2019

    Manufacturing production fell 2.5% year-on-year in March, down from a revised 1.3% drop in the prior month (previously reported: -1.6% year-on-year).

    Read more

  • Thailand: Exports drop in March, rounding off a weak first quarter

    April 23, 2019

    Thailand’s trade balance dropped from a USD 4.0 billion surplus in February to a USD 2.0 billion surplus in March; however, the 12-month moving sum of the trade balance increased to a USD 3.0 billion surplus from a surplus of USD 2.4 billion in February. In March, exports dropped 4.9% year-on-year while imports fell 7.6% year-on-year.

    Read more

  • Thailand: Inflation returns to target in March

    April 4, 2019

    Consumer prices rose 0.41% in March over the previous month (February: 0.24% month-on-month) due to higher prices for food and non-alcoholic beverages; housing and furnishing; and transport and communication. Inflation picked up to 1.2% in March, up from 0.7% in February and returning to the Central Bank’s 1.0%–4.0% target range.

    Read more

More news

Search form