Post by account_disabled on Jan 2, 2024 5:44:23 GMT
The MPC voted 5:2 to reduce interest rates by 0.25 percent per year for the first time in more than 4 years after the Thai economy tended to expand lower than expected due to the impact of continued contraction in exports. Ready to monitor future risk factors On August 7, 2019, Mr. Thitanan Mallikamas, secretary of the Monetary Policy Committee (MPC), revealed that the MPC meeting voted 5 to 2 to reduce the policy interest rate by 0.25 percent per year. from 1.75 percent to 1.50 percent per year with immediate effect, while 2 votes agreed to maintain the policy interest rate at 1.75 percent per year, the first reduction in 4 years and 4 months, when considering the MPC in April 2015 This is because the committee It is estimated that the Thai economy is likely to expand lower than estimated. From the contraction of merchandise exports, this began to affect domestic demand.
Headline inflation is likely C Level Executive List to be below the lower bound of the inflation target framework. Overall financial conditions remain at a relaxed level. The stability of the financial system has been partially maintained. But there are still risk factors that need to be monitored. Therefore, more accommodative monetary policy will help support economic expansion and allow general inflation to return to the target range. As for the two committee members, it was seen that the interest rate reduction was in a situation where monetary policy was already at an accommodative level. It may not help support economic expansion much. When compared with risks to the stability of the financial system that may increase.
There is also a need to maintain the ability to carry out monetary policy (policy space) to accommodate future risks. and the Thai economy as a whole is likely to expand lower than originally assessed and below its potential level. Merchandise exports shrank more than expected due to trading partners' economies and world trade volumes slowing down due to trade protectionism conditions that intensified and widened. The tourism sector is likely to expand at a slower pace. Mr. Titanan said that for the domestic demand side Private consumption tends to slow down in line with household income. outside the agricultural sector and employment that decreased Especially employment in the manufacturing sector for export.
Headline inflation is likely C Level Executive List to be below the lower bound of the inflation target framework. Overall financial conditions remain at a relaxed level. The stability of the financial system has been partially maintained. But there are still risk factors that need to be monitored. Therefore, more accommodative monetary policy will help support economic expansion and allow general inflation to return to the target range. As for the two committee members, it was seen that the interest rate reduction was in a situation where monetary policy was already at an accommodative level. It may not help support economic expansion much. When compared with risks to the stability of the financial system that may increase.
There is also a need to maintain the ability to carry out monetary policy (policy space) to accommodate future risks. and the Thai economy as a whole is likely to expand lower than originally assessed and below its potential level. Merchandise exports shrank more than expected due to trading partners' economies and world trade volumes slowing down due to trade protectionism conditions that intensified and widened. The tourism sector is likely to expand at a slower pace. Mr. Titanan said that for the domestic demand side Private consumption tends to slow down in line with household income. outside the agricultural sector and employment that decreased Especially employment in the manufacturing sector for export.