The Monetary Policy Committee (MPC) meeting on August 10, 20, voted 6 to 1 to raise the policy rate by 0.25% per annum from the current 0.50% to 0.75% per annum, effective immediately. In this regard, one vote should raise the policy rate by 0.50% per annum.
The Monetary Policy Committee (MPC) meeting on August 10, 20, voted 6 to 1 to raise the policy rate by 0.25% per annum from the current 0.50% to 0.75% per annum, effective immediately. In this regard, one vote should raise the policy rate by 0.50% per annum.
Mr. Piti Disayat, Secretary of the Monetary Policy Committee (MPC) The MPC meeting revealed that the Thai economy is likely to recover more clearly. It is expected to return to levels before the outbreak of COVID-19. available by the end of this year and will continue to expand in the next period Meanwhile, headline inflation is likely to remain high for a while.
The Committee assessed that the monetary policy was particularly accommodative. to support the COVID-19 crisis in the past reduced need Most of the directors agreed that the policy rate should be increased by 0.25% per annum at this meeting, while one director agreed that the policy rate should be increased by 0.50% per annum to help reduce the risk that an interest rate hike may have to be accelerated. in the future It is estimated that it will not affect the economic recovery significantly.
The MPC secretary stated that the Thai economy is likely to continue to recover. and has a clear transmission The number of foreign tourists increased more than expected. according to the relaxation of international travel policy and concerns about the decrease in travel. In addition, private consumption is likely to continue to recover. due to the improvement in labor market and household income
“Even though the global economy is at risk of slowing down But the impact on the major momentum of the Thai economy is expected to be limited. Nonetheless, the risk of further recovery in the Thai economy must be monitored from rising costs and living costs.”
Mr. Piti stated
As for the headline inflation in 2022, it is likely to be at a high level close to the previous estimate. It is expected to stay at a high level for a while. before gradually reducing to the target range in 2023 following the gradual easing of supply-side inflation pressures. Meanwhile, inflation forecasts in the medium term have not risen much in the past.
However, inflation in the next period There is still a high risk of cost pass-through to core inflation that may be much faster than expected. The Committee will monitor inflation developments and pass-through costs. Including inflation forecast closely
Mr. Piti said that the overall financial system was stable. Commercial banks have strong capital and reserve levels. including high liquidity in the financial system But the distribution of liquidity is still somewhat different in each economic sector. Debt serviceability of businesses and households improved in line with economic recovery. But some groups are still fragile. In particular, SMEs entrepreneurs in the sector with slow recovery and low-income households who are sensitive to the cost of living, the Committee agreed that debt restructuring measures should be continued. including the importance of having specific measures and sustainable debt solutions for vulnerable groups
Overall financial conditions remained accommodative but had high volatility. The exchange rate of the baht against the US dollar depreciated mainly in line with the appreciation of the US dollar. from concerns about risky assets Under the global economic slowdown and the Federal Reserve’s monetary policy direction, the Committee recommends that developments and volatility be closely monitored in the financial and foreign exchange markets.
“Under the framework of monetary policy that aims to stabilize prices Along with taking care of the economy for sustainable growth and full potential and maintain financial system stability. This makes the monetary policy particularly accommodating. reduced need and saw that the policy interest rate hike returned to a level suitable for long-term stable economic growth This should be done gradually. in line with the economic context and inflation going forward.”
Secretary of the MPC said
By InfoQuest News Agency (Aug. 10, 65)
Tags: lifestyle, MPC, interest, policy interest, Piti Disayat