Bank of Thailand lifts growth forecast, holds rates steady

March 28, 2018

BANGKOK - The Bank of Thailand has upgraded its GDP growth forecast to 4.1% for 2018 from 3.9% previously, and expects 4.1% growth in 2019 as well. The bank said primary drivers underlying this revision were: (1) continued strength in exports and tourism flows; (2) ongoing increase in public expenditure, which is also starting to crowd in privateinvestment; and (3) moderate improvement in private consumption.

The central bank saidthe improvement in private consumption had been moderate because the recovery has yet to sufficiently feed through into household

incomes and employment in a broad-based manner.

 

The bank does not see inflation becoming a problem despite stronger growth, maintaining that demand-pull inflationary pressures remain low.

 

ANZ Bank says it concurs with the BoT’s views, and says it does not see any reason for the bank to tighten monetary policy this year. www.live.anz.com (ATI).