Export growth is expected to be flat year on year, due to three factors: impacts of the US-China trade tensions, the slowdown of the global economy and the strong baht.
The Kingdom's strong current account surplus of US$13.5 billion is seen as the key factor in the strengthening of the baht by 5 to 6 per cent since January, making it the strongest currency in the Asia-Pacific region.
This is because the baht is being seen as a safe haven for foreign investors, causing large capital inflows into the country, the BOT said.
Meanwhile, inflation remains at 1 per cent. While this is low, the central bank stated that the inflation level is still within the set target and does not present a major risk to the economy.
The BOT will hold the policy rate at 1.75 per cent for now. Instead, it will use other measures such as tightening regulations on non-resident baht accounts and non-resident baht accounts for securities to slow down capital inflows into the Kingdom and prevent further strengthening of the baht.