The Bank of Thailand kept the policy rate at 1.75 percent on March 2019 meeting, as widely expected. The Committee said that the current accommodating monetary policy stance would remain appropriate in the period ahead and would continue to support economic growth, financial stability and inflation. For 2019, the Bank revised its economic growth forecast to 3.8 percent from 4.0 percent while inflation was 1 percent, unchanged from seen three months ago. Interest Rate in Thailand averaged 2.21 percent from 2000 until 2019, reaching an all time high of 5 percent in June of 2006 and a record low of 1.25 percent in June of 2003.

Interest Rate in Thailand is expected to be 1.75 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Thailand to stand at 2.00 in 12 months time. In the long-term, the Thailand Interest Rate is projected to trend around 2.25 percent in 2020, according to our econometric models.

Thailand Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-11-14 07:05 AM Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-12-19 07:05 AM Interest Rate Decision 1.75% 1.5% 1.75% 1.5%
2019-02-06 07:05 AM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-03-20 07:05 AM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-05-08 07:05 AM Interest Rate Decision 1.75%
2019-06-19 07:05 AM Interest Rate Decision
2019-08-07 07:05 AM Interest Rate Decision



Thailand Leaves Interest Rate Steady as Expected

The Bank of Thailand kept the policy rate at 1.75 percent on March 2019 meeting, as widely expected. The Committee said that the current accommodating monetary policy stance would remain appropriate in the period ahead and would continue to support economic growth, financial stability and inflation. For 2019, the Bank revised its economic growth forecast to 3.8 percent from 4.0 percent while inflation was 1 percent, unchanged from seen three months ago.

Statement by the Bank of Thailand: 

Despite a slight downward revision to economic projection, the Thai economy as a whole was expected to continue expanding around its potential on the back of domestic demand. Private consumption was expected to continue expanding on the back of increasingly broad-based improvements in both farm and non-farm income with additional supports from government measures. Nevertheless, private consumption was restrained by elevated household debt. Private investment was projected to continue expanding thanks to the relocation of production base to Thailand, public-private partnership projects for infrastructure investment, and favourable business sentiment. Meanwhile, merchandise exports grew at a slower pace than previously assessed due to the global economic slowdown, a down cycle of electronic products as well as impacts from trade protectionism measures between the US and China. Tourism continued to gain traction. Public expenditure, both consumption and investment, would grow at a slower pace than previously assessed, which was partly due to delay in some state-owned enterprise investment projects.
 
The annual average of headline inflation would be largely unchanged from the previous projection. This was attributable to higher energy prices relative to the assessment in the previous meeting. In addition, fresh food prices increased as excess supply alleviated and the drought condition intensified, which offset effects of lower core inflation compared to the previous assessment.
 
Financial conditions over the previous period had been accommodative and conducive to economic growth, with ample liquidity in the financial system. Real interest rates remained at a low level, allowing financing by the private sector to continue expanding. Loans extended to businesses and consumers continued to grow. With regard to exchange rates, the Thai baht depreciated against the US dollar in the intermeeting period in line with regional currencies. Looking ahead, the baht would likely remain volatile due to both domestic and external uncertainties, and thus the Committee would continue to closely monitor exchange rate developments as well as their impacts on the economy.
 
Financial stability remained sound overall but there remained a need to monitor risks that might pose vulnerabilities to financial stability in the future. The Committee viewed that the implemented macroprudential measures and the increased policy rate would to some extent help curb accumulation of vulnerabilities in the financial system from the search-for-yield behavior in the low interest rate environment that might lead to underpricing of risks.
 
Looking ahead, the Thai economy was projected to continue to gain traction although the external demand momentum might slow down. The Committee viewed that current accommodative monetary policy stance would remain appropriate and would continue to monitor developments of economic growth, inflation, and financial stability, together with associated risks, in deliberating appropriate monetary policy in the period ahead.


Bank of Thailand l Chusnul Ch Manan | chusnul@tradingeconomics.com
3/20/2019 12:00:08 PM



Thailand Money Last Previous Highest Lowest Unit
Interest Rate 1.75 1.75 5.00 1.25 percent [+]
Interbank Rate 1.88 1.88 5.41 1.35 percent [+]
Money Supply M0 1474258.00 1504450.00 1504450.00 280977.00 THB Million [+]
Money Supply M1 2045.80 2095.10 2095.10 365.90 THB Billion [+]
Money Supply M3 20100.26 20117.03 20117.03 5077.80 THB Billion [+]
Banks Balance Sheet 19061968.00 18950595.00 19061968.00 14874369.00 THB Million [+]
Foreign Exchange Reserves 212540.70 209910.75 215614.70 326.00 USD Million [+]
Loans to Private Sector 4141049.00 4181406.00 4181406.00 1701089.00 THB Million [+]
Deposit Interest Rate 1.29 1.30 13.67 1.02 percent [+]
Central Bank Balance Sheet 7363844.00 7372227.00 7816961.00 2103522.00 THB Million [+]


Thailand Interest Rate

In Thailand, interest rates decisions are taken by The Bank of Thailand’s Monetary Policy Committee. The main interest rate is the 1-day repurchase rate. This page provides - Thailand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Thailand Interest Rate - actual data, historical chart and calendar of releases - was last updated on March of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.75 5.00 1.25 2000 - 2019 percent Daily




Country Last Previous
Argentina 63.71 Mar/19
Turkey 24.00 Mar/19
Mexico 8.25 Feb/19
Russia 7.75 Feb/19
South Africa 6.75 Feb/19
Brazil 6.50 Feb/19
India 6.25 Feb/19
Indonesia 6.00 Feb/19
China 4.35 Feb/19
Saudi Arabia 3.00 Feb/19
United States 2.50 Feb/19
Canada 1.75 Mar/19
South Korea 1.75 Feb/19
Singapore 1.66 Feb/19
Australia 1.50 Mar/19
United Kingdom 0.75 Feb/19
Euro Area 0.00 Mar/19
France 0.00 Mar/19
Germany 0.00 Mar/19
Italy 0.00 Mar/19
Netherlands 0.00 Mar/19
Spain 0.00 Mar/19
Japan -0.10 Mar/19
Switzerland -0.75 Feb/19


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