The worst is over says Bank of Thailand
The Thai economy is likely to recover this year and enjoy positive growth next year given the global economic resilience and low inflation rates, according to the Bank of Thailand (BoT). According to the Bank of Thailand deputy governor Bandid Nijathaworn, the economy has cross the worst phase and gross domestic product (GDP) will move into the black next year although inflationary pressure will increase.
Earlier, the Bank of Thailand had decreased its GDP projection for this year to a negative growth of 1.5-3.5 per cent and forecast the GDP would turn around to grow at 1.5-3.5 per cent next year. The deputy governor added that Thailand’s current policy rate of 1.25 percent is already low and is not impeding economic growth.
The central bank kept its key rate unchanged at 1.25 percent last week for a second straight meeting after cutting it four times since December.
Mr.Bandid said that the liquidity in the monetary system is still adequate as it is five times higher than the Bank of Thailand’s standard, and commercial banks should see no problem in approving loans.
The Finance Ministry’s has ordered for seven state-owned banks to make loans totaling 1.25 trillion baht for the entire year which would help the private sector and stimulate the economy.
Meanwhile, Finance Minister Korn Chatikavanij said the Revenue Department has announced an exemption from withholding tax on bank savings accounts which earn no more than 20,000 baht interest a year.