Author: Peerapan Suwannarat
EIC expects the MPC to maintain policy rate throughout the year.
Press release by Bank of Thailand (this meeting compared to the previous meeting)
Previous meeting (24 May 2017)
Thailand’s firm economic growth gained traction due to better exports and the swift recovery in tourism. Private consumption continued to expand on the back of rise in farm income but non-farm income did not gain much from the export growth. Public expenditure remained a key growth driver. Meanwhile, private investment slowly picked up. However, the improved growth outlook was still subject to external risks including uncertainties in U.S. economic and trade policies, monetary policy directions of major advanced economies, China’s economic reforms, geopolitical risks, and immigrant labor situation.
Headline inflation softened mainly due to lower vegetables and fruits prices from higher output and last year’s base effects following the drought, as well as the decline in global oil prices. Nonetheless, headline inflation was projected to slowly rise.
U.S. economic and foreign trade policies
Debt servicability of SMEs
Monetary policy of major advanced economies
Immigrant labor situation