BoT Forecasts Positive Outlook for Thai Economy in 2024, Despite Uncertainties and Disagreement with PM

Bank of Thailand’s Monetary Policy Meeting Reveals Positive Outlook for Thai Economy in 2024

During the April 10 monetary policy meeting, the Bank of Thailand revealed that it expects Thailand’s economy to grow at a faster rate in 2024 compared to 2023, supported by private consumption and tourism. Despite this positive outlook, uncertainties remain regarding factors such as export recovery, government budget disbursement, and fiscal stimulus measures.

The monetary policy committee voted 5-2 to keep the one-day repurchase rate steady at 2.50%, the highest in over a decade, for the third consecutive meeting. Two members of the committee advocated for a quarter-point cut. The next rate review is scheduled for June 12.

The committee members believe that the current policy rate is appropriate for sustaining growth and fostering macro-financial stability in the long term. However, they acknowledge that uncertainties persist in the Thai economy, highlighting the importance of factors like export recovery and government spending.

In contrast to these positive predictions, Prime Minister Srettha Thavisin has expressed disagreement with the central bank’s monetary policy, advocating for rate cuts to alleviate high household debt and mitigate China’s economic slowdown impact on Thailand’s economy.

In December 2023, Thailand’s economy unexpectedly contracted by 0.6% in the final quarter, leading to full-year growth reaching only 1.9%, below the expected growth rate of 2.5% recorded in