Thailand Monetary Policy May 2019

Thailand

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.

The decision came on the back of largely unchanged inflation expectations and softening economic growth in Thailand, while the Bank projects that global economic and domestic headwinds are likely to persist. The Bank sees inflation averaging near the lower bound of its target range going forward as weaker food price inflation is expected to offset higher energy prices. Drought is a key risk to the inflation outlook, however. Meanwhile, the Committee also noted that the Thai economy is likely to expand at a somewhat more moderate pace, amid slowing global growth more broadly, which will drag on exports. Domestic demand should remain resilient but the Bank stated that elevated household debt and weakening employment gains are likely to drag on private consumption growth.

The Committee’s tone was unchanged in its accompanying press communiqué, judging “the current accommodative monetary policy stance would remain appropriate” and pledging to continue monitoring developments relating to economic growth, inflation and the financial markets.

The next monetary policy meeting is scheduled for 26 June.

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.

Download

Thailand Monetary Policy Chart


Thailand Monetary Policy May 2019

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


Thailand Economic News

  • Thailand: Inflation inches down in May

    June 4, 2019

    Consumer prices increased 0.48% month-on-month in May, up from the prior month’s 0.44% rise, reflective on noticeable price increases for food and non-alcoholic beverages, while transportation and communication costs also rose albeit at a softer pace than in the prior month.

    Read more

  • Thailand: Manufacturing output rebounds in April

    May 28, 2019

    Manufacturing production rose 2.0% year-on-year in April, swinging from a revised 2.7% contraction in March (previously reported: -2.5% year-on-year).

    Read more

  • Thailand: Exports fall again in April

    May 23, 2019

    Thailand recorded a trade deficit of USD 1.5 billion in April, swinging from a USD 2.0 billion surplus in March; the 12-month moving sum of the trade balance narrowed from a USD 3.0 billion surplus in March to a USD 2.6 billion surplus.

    Read more

  • Thailand: Economic growth moderates to near five-year low in Q1

    May 21, 2019

    Economic growth decelerated to 2.8% year-on-year in the first quarter of 2019, down from the 3.6% annual expansion logged in Q4 last year and the lowest reading in nearly half a decade.

    Read more

  • 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

More news

Search form