As Thailand’s economy suffers and tourism is struggles Thailand’s central bank has left its benchmark rate unchanged. The Monetary Policy Committee voted unanimously Wednesday to hold its key rate at 1.50%.
The Bank of Thailand has now slashed the country’s economic growth projection for this year. From 3.3% to 2.8% and the projection for next year from 3.3%.
The Monetary Policy Committee, unanimously agreed today (Wednesday) to retain the policy interest rate at 1.5%.
Mr. Thitanan, secretary of the committee, explained the decision not to revise the policy rate. Saying that the committee assessed that the economic growth rate will be below projections.
Mr. Thitanan said that this year, Thai exports will drop 1% year-on-year.– and are expected to increase by 1.7% next year, against the original forecast of 4.3%.
Imports this year are forecast to drop by 3.6% this year, against the original projection of 0.3%.
Thailand Household Debt third highest among 29 Asian countries
Thailand is now a top-ten highest household debt country among 89 countries worldwide. Its the third highest among 29 Asian countries.
Thailand’s household debt has steadily increased to 78.6% of the country’s gross domestic products (GDP). According to figures from the National Economic and Social Development Council.
A study by the Bank of Thailand reports that Thais get into debt in their 20s and tend to borrow more as they age.
The Bank of Thailand reported, almost 16%, or 3 million Thais, have debt payments which are 90-days past due.
Without better credit controls, it will be difficult for the Thai financial institutions to limit the worsening of household debt.
Trapped in a debt cycle, indebted household often don’t have sufficient financial literacy or spending discipline.
Source: Thai PBS