Central bank worries about high household debt levels

Central bank worries about high household debt levels

The Legal Execution Department and the Rights and Liberties Protection Department of the Ministry of Justice organise the Debt Mediation Fair at Chaeng Wattana Government Complex in March 2022. (Photo: Apichit Jinakul)
The Legal Execution Department and the Rights and Liberties Protection Department of the Ministry of Justice organise the Debt Mediation Fair at Chaeng Wattana Government Complex in March 2022. (Photo: Apichit Jinakul)

The Bank of Thailand (BoT) is worried about high household debt levels, an official said on Thursday, as the debt ratio hit 90.1% of gross domestic product at the end of 2021 amid a slow economic recovery.

The concern was focused on consumer loans that account for about 28% of the total debt, a relatively high level compared with other countries, senior director Suwannee Jatsadasak said on the central bank's Youtube channel. 

On Wednesday, the BoT said the country's policy interest rate will have to rise but the timing will hinge on the monetary policy committee's view with the economy growing below its potential and the recovery facing uncertainty.


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