Policy tightening to be gradual as recovery slow, says Bank of Thailand

Policy tightening to be gradual as recovery slow, says Bank of Thailand

Bangkok's Chinatown in Yaowarat district. (Photo: Wichan Charoenkiatpakul)
Bangkok's Chinatown in Yaowarat district. (Photo: Wichan Charoenkiatpakul)

Economic recovery in Thailand remains intact but slow, so monetary policy tightening should be gradual to ensure a smooth recovery while fighting surging inflation, Bank of Thailand (BoT) governor Sethaput Suthiwartnarueput said on Saturday.

Southeast Asia's second-largest economy is expected to return to its pre-coronavirus pandemic growth rates late this year or early next, Mr Sethaput told reporters.

BoT senior director Chayawadee Chai-Anant said on Friday that the central bank believes politics should not affect the economy.

For domestic political risks, the BoT is concentrating on fiscal budget disbursement, which is continuing, said Ms Chayawadee.

Functioning fiscal and monetary policies have supported the economic rebound, while foreign investors are confident in the country's strong fundamentals, reflected by positive capital inflow, she said.

The bank reported economic data for August on Friday signalling continued recovery driven by private consumption and foreign tourism arrivals.


Do you like the content of this article?
COMMENT (6)

Cops raid illegal beauty clinics, arrest eight suspects

Six women and two men have been arrested after police and health authorities raided eight illegal beauty clinics in Bangkok, Chon Buri, Samut Songkhram and Pathum Thani.

6 Dec 2022

PPRP faction rebuts defection rumours

The Pak Nam clique in the ruling Palang Pracharath Party (PPRP) pledged to stick with the PPRP for now, although its future in politics remains up in the air, faction member Sunthorn Pansaengthong said on Tuesday.

6 Dec 2022

BCPG preps Asia's largest wind farm in Laos

BCPG Plc, the renewable power generation arm of Bangchak Corporation Plc, is planning to build Asia’s largest wind farm in Laos in cooperation with PowerChina International Group.

6 Dec 2022