Thai central financial institution says rate of interest maintain was strong coverage amid uncertainty

BANGKOK (Reuters) – Thailand’s central financial institution mentioned on Monday a call to carry the important thing rate of interest regular final month was a strong coverage because the economic system is going through heightened uncertainty.

Financial coverage turns into much less efficient beneath excessive uncertainty, however holding the speed regular doesn’t rule out future coverage changes, the central financial institution mentioned in a paper ready for a financial coverage discussion board.

Final month, the Financial institution of Thailand left its key rate of interest unchanged at 2.25%, after a shock lower within the earlier assessment in October.

On the assessment, it maintained its forecast for financial progress at 2.7% in 2024 and a pair of.9% in 2025. The following fee assessment is on Feb. 26.

Progress was seen greater than 3% within the final quarter final yr, the central financial institution mentioned within the paper.

The economic system was prone to develop nearer to potential, pushed by exports, tourism and home demand, the central financial institution mentioned, including that potential protectionism from america beneath incoming president, Donald Trump, may drive extra Chinese language items to Thailand.