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SCB EIC expects steady policy rate at 2.5% throughout the year
The MPC voted 5-2 to maintain the policy rate at 2.50% as the Thai economy is projected to slow in 2024, attributed to reduced exports and manufacturing activity. Inflation is low, but there are expectations for gradual growth, while the financial system demonstrates resilience.
The MPC voted 5 to 2 to keep the policy rate at 2.50 percent, with two members in favor of reducing the rate by 0.25 percentage point. The MPC anticipates a slowdown in the Thai economy in 2024 as a result of softening global demand and moderating growth in China.
The slower initial momentum suggests a gentler outlook for 2024 growth, expected to be between 2.5-3 percent. Private consumption and tourism will continue to drive growth, while exports and manufacturing activity will grow moderately due to global demand constraints and a delayed upturn in the Thai electronic cycle. In the future, structural…
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