MPC raises GDP view
The Monetary Policy Committee (MPC) has raised its forecast for this year's economic growth to 3.8 per cent from an earlier estimate of 3.5 per cent, following rises in exports and domestic demand, while leaving the policy rate unchanged yesterday.
The forecast for next year's economic growth was also revised up to 3.8 per cent from 3.7 per cent.
However, risks to the growth outlook exist both domestic and external , including impacts from regulations on immigrant workers, uncertainties pertaining to US economic and foreign trade policies, and geopolitical risks.
Jaturong Jantarangs, MPC secretary and assistant governor at Bank of Thailand's Monetary Policy Group, said the Thai economy could grow at a faster pace than previous projections, driven by expansion in merchandise and service exports and a continued recovery in more broad-based domestic demand.
The current monetary stance continues to support growth, which should foster the return of headline inflation as targeted although this could take some time, he said.
In its meeting yesterday , the MPC voted unanimously to put the policy rate on hold at 1.50 percent.
This year's estimated Thai export growth was raised to 5.9 per cent from the previous projection of 4.6 per cent after expansion in goods exports and services on the back of a stronger global economic recovery.
Private consumption is increasing gradually as households' purchasing power has not risen enough, while the incomes of poorer households have yet to fully recover.
