The Bank of Thailand held its policy rate at 1.75 percent on its June 26th 2019 meeting, as widely expected. Policymakers said that the current accommodating monetary policy stance remains appropriate for economic growth given the inflation target. The Committee slashed its 2019 economic growth outlook to 3.3 percent from a preliminary 3.8 percent while unrevised its inflation forecasts (1 percent for 2019) and projected that exports will be flat. Policymakers added that they will continue to monitor developments on economic growth, inflation, and financial stability, together with associated risks, namely trade tensions. Interest Rate in Thailand averaged 2.20 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 1.50 in 12 months time. In the long-term, the Thailand Interest Rate is projected to trend around 2.00 percent in 2020, according to our econometric models.

Thailand Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
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% 1.75% 1.75% 1.75%
2019-06-26 07:05 AM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-08-07 07:05 AM Interest Rate Decision 1.75% 1.75%
2019-09-18 07:05 AM Interest Rate Decision 1.75%
2019-11-06 07:05 AM Interest Rate Decision 1.75%



Thailand Leaves Monetary Policy Unchanged

The Bank of Thailand held its policy rate at 1.75 percent on its June 26th 2019 meeting, as widely expected. Policymakers said that the current accommodating monetary policy stance remains appropriate for economic growth given the inflation target. The Committee slashed its 2019 economic growth outlook to 3.3 percent from a preliminary 3.8 percent while unrevised its inflation forecasts (1 percent for 2019) and projected that exports will be flat. Policymakers added that they will continue to monitor developments on economic growth, inflation, and financial stability, together with associated risks, namely trade tensions.

Statement by the Bank of Thailand: 

The Thai economy was expected to expand at a slower pace than previously assessed. Merchandise exports would grow at a significantly slower pace than the previous assessment due to the slowdown of trading partner economies and global trade, which were affected by intensifying trade tensions, particularly between the US and China. Tourism would grow at a lower rate relative to the previous assessment due mainly to Chinese tourist figures. Regarding domestic demand, private consumption was expected to continue expanding. Nevertheless, private consumption would be restrained by elevated household debt, with signs of moderation in earnings and employment in the export-related manufacturing sectors. Private investment was projected to slowdown. However, the relocation of production base to Thailand and public-private partnership projects for infrastructure investment would support investment in the period ahead. Meanwhile, public expenditure would grow at a slower pace than previously estimated due to the expected delay in the enactment of the Annual Budget Expenditure Act, B.E. 2563 (A.D. 2020) as well as postponement of some state-owned enterprise investment. The Committee would monitor external risks from trade tensions, the economic outlook of China and advanced economies that could affect domestic demand, as well as geopolitical risks. Furthermore, the Committee would monitor policy implementation of the new government and public expenditure, as well as the progress of major infrastructure investment and its knock-on effects on private investment, which could affect the momentum of economic growth in the period ahead.

The annual average of headline inflation would be largely unchanged from the previous projection, although fresh food prices were expected to increase from the previous meeting. Meanwhile, core inflation would be mostly in line with the previous projection. The Committee viewed that structural changes contributed to more persistent inflation than in the past. Such changes included the expansion of e-commerce, rising price competition, and technological development which reduced costs of production. 

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 baht appreciated at a somewhat fast paceand outperformed regional currencies, which was a result of the weakening US dollar, short-term capital inflows, and domestic factors. The Committee expressed concerns over the baht appreciation which might not be consistent with economic fundamentals and would continue to closely monitor developments of exchange rates and capital inflows. 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 had to some extent curbed accumulationof 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 would expand at a slower pace due mainly to the softening momentum of external demand. The Committee would continue to monitor developments of economic growth, inflation, and financial stability, together with associated risks, especially impacts of trade tensions, in deliberating appropriate monetary policy in the period ahead.


Bank of Thailand l Stefanie Moya | stefanie.moya@tradingeconomics.com
6/26/2019 7:58:48 AM



Thailand Money Last Previous Highest Lowest Unit
Interest Rate 1.75 1.75 5.00 1.25 percent [+]
Interbank Rate 1.87 1.87 5.41 1.35 percent [+]
Money Supply M0 1482012.00 1499911.00 1514979.00 280977.00 THB Million [+]
Money Supply M1 2143.60 2105.00 2143.60 365.90 THB Billion [+]
Money Supply M3 20308.11 20371.40 20371.40 5077.80 THB Billion [+]
Banks Balance Sheet 19408154.00 19405534.00 19408154.00 14874369.00 THB Million [+]
Foreign Exchange Reserves 215808.41 209955.74 215808.41 326.00 USD Million [+]
Loans to Private Sector 4236753.00 4141184.00 4236753.00 1701089.00 THB Million [+]
Deposit Interest Rate 1.29 1.30 13.67 1.02 percent [+]
Central Bank Balance Sheet 7729802.00 7800972.00 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 July 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 58.80 Jul/19
Turkey 24.00 Jun/19
Mexico 8.25 Jul/19
Russia 7.50 Jun/19
South Africa 6.75 May/19
Brazil 6.50 Jun/19
Indonesia 6.00 Jun/19
India 5.75 Jul/19
China 4.35 Jun/19
Saudi Arabia 3.00 Jun/19
United States 2.50 Jun/19
Canada 1.75 Jul/19
South Korea 1.75 Jun/19
Singapore 1.67 Jun/19
Australia 1.00 Jul/19
United Kingdom 0.75 Jun/19
Euro Area 0.00 Jun/19
France 0.00 Jun/19
Germany 0.00 Jun/19
Italy 0.00 Jun/19
Netherlands 0.00 Jun/19
Spain 0.00 Jun/19
Japan -0.10 Jun/19
Switzerland -0.75 Jun/19


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