Investing.com - Financial Markets Worldwide

Thai economic uncertainty has increased, central bank minutes say

Published 01/01/2025, 10:12 PM
Updated 01/01/2025, 10:15 PM
© Reuters. FILE PHOTO: The Bank of Thailand logo is pictured in Bangkok, Thailand, August 5, 2016. REUTERS/Chaiwat Subprasom/File photo

BANGKOK (Reuters) - Uncertainty around the Thai economy has significantly increased primarily due to the unclear impact of possible U.S. economic policies, minutes of the Bank of Thailand's Dec. 18 monetary policy meeting showed on Thursday. At the meeting, the BOT's monetary policy committee unanimously voted to leave the one-day repurchase rate unchanged at 2.25%, after a surprise cut at the previous review in October. The MPC deemed it appropriate to hold steady given the heightened uncertainties, the minutes said. "Maintaining sufficient monetary policy space to respond appropriately at the right time was deemed essential to maximise the effectiveness of monetary policy," the minutes said. At the December policy review, the central bank maintained its forecast for economic growth at 2.7% in 2024 and 2.9% in 2025, and the minutes showed the committee felt the overall economy was expanding despite a decline in credit growth. The committee said it was crucial to monitor credit quality and credit growth developments among sectors where recovery was slow, as well as for the impact on the broader economy. The central bank expected headline inflation of 1.1% in 2025, near the bottom of its 1% to 3% target range, and said medium-term inflation expectations were within the target range. The next rate review is on Feb. 26.

Latest comments

Install Our App
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2025 - Fusion Media Limited. All Rights Reserved.