The Bank of Thailand voted by four to three to keep the policy rate at 1.5 percent on 14th November 2018, as widely expected. The Committee said that monetary policy should remain accommodative, although the need for accommodative policy would be gradually reduced, despite signs of sluggishness in the economy's two main drivers, exports and tourism. Interest Rate in Thailand averaged 2.22 percent from 2000 until 2018, 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
width
height
Forecast Data Chart
Trading Economics members can view, download and compare data from nearly 200 countries, including more than 20 million economic indicators, exchange rates, government bond yields, stock indexes and commodity prices.

The Trading Economics Application Programming Interface (API) provides direct access to our data. It allows API clients to download millions of rows of historical data, to query our real-time economic calendar, subscribe to updates and receive quotes for currencies, commodities, stocks and bonds.


Calendar GMT Actual Previous Consensus TEForecast
2018-06-20 07:05 AM Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
2018-08-08 07:00 AM Interest Rate Decision 1.5% 1.5% 1.5% 1.75%
2018-09-19 07:05 AM Interest Rate Decision 1.5% 1.5% 1.5% 1.5%
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 1.5% 1.5% 1.75%



Thailand Leaves Monetary Policy Unchanged



The Bank of Thailand voted by four to three to keep the policy rate at 1.5 percent on 14th November 2018, as widely expected. The Committee said that monetary policy should remain accommodative, although the need for accommodative policy would be gradually reduced, despite signs of sluggishness in the economy's two main drivers, exports and tourism.

Statement by the Bank of Thailand:

The Thai economy as a whole continued to gain traction despite some signs of slowing export growth owing in part to trade protectionism measures between the US and China, a slowdown of the electronics cycles, and trading partner countries’ weather conditions which were temporary factors. Meanwhile, tourism exhibited a slower growth especially due to a declined number of Chinese tourists. However, domestic demand momentum continued to expand. Private consumption was expected to expand on the back of improvements in income and employment in non-agricultural sector but was restrained by elevated household debt.

Private investment was projected to continue expanding owing to the relocation of production base to Thailand and public-private partnership projects for infrastructure investment. Public expenditure would grow at a slower pace than previously assessed due to delayed investment by some state-owned enterprises. Overall, the Thai economy would continue to expand but would be subject to increasing downside risks from trade protectionism measures between the US and China, which could have larger impacts than expected, and from geopolitical risks.

The annual average of headline inflation was expected to rise slowly in line with the previous assessment. However, downside risks increased due to fluctuations in energy and fresh food prices. Core inflation was projected to rise broadly in line with the previous assessment  given the gradually rising demand-pull inflationary pressures. 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.

Overall financial conditions remained accommodative and conducive to economic growth with ample liquidity in the financial system. Short-term government bond yields increased slightly. Real interest rates remained low, allowing financing by the private sector to continue expanding as reflected in both business and consumer loan growth. With regard to exchange rates, the baht depreciated against the US dollar, in the same direction with regional currencies, due to concerns over growing risks to the global economy. Looking ahead, the baht would likely remain volatile and thus the Committee would continue to closely monitor exchange rate developments as well as 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, especially the search-for-yield behavior in the prolonged low interest rate environment that might lead to underpricing of risks. The competition in the mortgage loan market, which led to looser credit standards, was addressed to a certain extent by the revision in macroprudential measure on mortgage loans. In addition, the Committee deemed it necessary to monitor further household debt accumulation and debt serviceability of SMEs especially those affected by changes in structural factors and business models.

Looking ahead, the Thai economy as a whole was projected to continue to gain traction despite moderating external demand and potential risks from larger-than-expected impacts of trade protectionism measures between the US and China. Furthermore, there remained a need to monitor developments of inflation and financial stability risks going forward.



Bank of Thailand l Rida | rida@tradingeconomics.com
11/14/2018 12:14:35 PM



Thailand Money Last Previous Highest Lowest Unit
Interest Rate 1.50 1.50 5.00 1.25 percent [+]
Interbank Rate 1.61 1.61 5.41 1.35 percent [+]
Money Supply M0 1382325.00 1388931.00 1437578.00 280977.00 THB Million [+]
Money Supply M1 1977.50 1960.10 2061.00 365.90 THB Billion [+]
Money Supply M3 19737.62 19519.17 19737.62 5077.80 THB Billion [+]
Banks Balance Sheet 18595409.00 18633632.00 18841592.00 14874369.00 THB Million [+]
Foreign Exchange Reserves 203153.03 201784.55 215614.70 326.00 USD Million [+]
Loans to Private Sector 4060599.00 4041652.00 4060599.00 1701089.00 THB Million [+]
Deposit Interest Rate 1.29 1.30 13.67 1.02 percent [+]
Central Bank Balance Sheet 7690078.00 7510147.00 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 December of 2018.

Actual Previous Highest Lowest Dates Unit Frequency
1.50 1.50 5.00 1.25 2000 - 2018 percent Daily




Country Last Previous
Argentina 58.97 Dec/18
Turkey 24.00 Nov/18
Mexico 8.00 Nov/18
Russia 7.50 Nov/18
South Africa 6.75 Nov/18
Brazil 6.50 Nov/18
India 6.50 Dec/18
Indonesia 6.00 Nov/18
China 4.35 Nov/18
Saudi Arabia 2.75 Nov/18
United States 2.25 Nov/18
Singapore 1.97 Nov/18
Canada 1.75 Dec/18
South Korea 1.75 Nov/18
Australia 1.50 Dec/18
United Kingdom 0.75 Nov/18
Euro Area 0.00 Nov/18
France 0.00 Nov/18
Germany 0.00 Nov/18
Italy 0.00 Nov/18
Netherlands 0.00 Nov/18
Spain 0.00 Nov/18
Japan -0.10 Nov/18
Switzerland -0.75 Nov/18


Related

Latest