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Thai central bank holds rates, cuts GDP outlook on tourism slump
BANGKOK: Thailand’s central bank kept its benchmark interest rate unchanged and lowered its economic growth forecast for this year and next as the country grapples with its biggest wave of Covid cases yet.
The Bank of Thailand held the policy rate at a record low of 0.5% yesterday for a ninth straight meeting in a unanimous decision, as expected by all 25 economists in a Bloomberg survey.
The country’s vaccination campaign will be key to economic recovery, Bank of Thailand assistant governor Titanun Mallikamas said at a briefing in Bangkok.
Any rebound in the labour market will be slower than in the past, and could be W-shaped – rather than a smooth return – as the market is more fragile now.
The bank’s rate-setting committee “is ready to use limited policy space at the most effective…
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