BOT: Political Turmoil a 'Short-Term' Risk, Economy to Remain on Track
Thailand's central bank says continuity of policy is key to navigating political uncertainty, with long-term investment decisions hinging on consistent government support
The Bank of Thailand (BOT) has downplayed the impact of recent political developments on the nation's economy, stating that while they may cause a temporary dip in investor confidence, they are unlikely to derail the overall economic outlook.
Chayawadee Chai-anant, the BOT's Assistant Governor and spokesperson, said the central bank believes that if the government can continue to implement its economic policies and measures smoothly, the broader economic impact will not be severe.
The spokesperson added that the recent court ruling on the Prime Minister has provided clarity, reducing previous uncertainties and enabling investors to better assess the situation.
This, she explained, is a more crucial factor in managing the current climate.
The BOT maintains its forecast for Thailand's economic growth, viewing political events as a "downside risk" that requires close monitoring and further assessment.
Chayawadee emphasised that Thailand has a history of navigating political upheaval, and the most critical factor for the economy is the continuity of policies and plans.
"If you ask investors about making additional investments, they will look at the continuity of the policies, benefits, and measures that attract them," she said. "If those things remain, coupled with their continued perception of opportunities and government support, these are the primary factors in their investment decisions."
While acknowledging the short-term impact on confidence, the BOT insists that long-term investment decisions are primarily driven by consistent policy.
