The Bank of Thailand left its policy rate unchanged at 1.75 percent on its May 5th 2019 meeting, as widely expected. Policymakers said that the current accommodating monetary policy stance remains appropriate and added that there are still risks to financial stability. The Committee noted that the economy is growing less than forecast and inflation is seen close to low end of the target range. The annual inflation rate fell slightly to 1.23 percent in April from 1.24 percent in March, amid a slowdown in cost of food and non-alcoholic beverages and housing. Interest Rate in Thailand averaged 2.20 percent from 2000 until 2019, reaching an all time high of 5 percent in June of 2006 and a record low of 1.25 percent in June of 2003.

Interest Rate in Thailand is expected to be 2.00 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Thailand to stand at 2.00 in 12 months time. In the long-term, the Thailand Interest Rate is projected to trend around 2.25 percent in 2020, according to our econometric models.

Thailand Interest Rate
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Calendar GMT Actual Previous Consensus TEForecast
2018-12-19 07:05 AM Interest Rate Decision 1.75% 1.5% 1.75% 1.5%
2019-02-06 07:05 AM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-03-20 07:05 AM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-05-08 07:05 AM Interest Rate Decision 1.75% 1.75% 1.75% 1.75%
2019-06-19 07:05 AM Interest Rate Decision 1.75%
2019-08-07 07:05 AM Interest Rate Decision
2019-09-18 07:05 AM Interest Rate Decision



Thailand Holds Policy Rate at 1.75%

The Bank of Thailand left its policy rate unchanged at 1.75 percent on its May 5th 2019 meeting, as widely expected. Policymakers said that the current accommodating monetary policy stance remains appropriate and would continue to monitor developments of economic growth, inflation, financial stability, and risks associated with it. The Committee noted that the economy is growing at a softer pace than expected and inflation is expected to be around the lower bound of the target range. The annual inflation rate fell slightly to 1.23 percent in April from 1.24 percent in March, amid a slowdown in cost of food and non-alcoholic beverages and housing.

Statement by the Bank of Thailand: 

The Thai economy was expected to expand at a slower pace than previously assessed owing to merchandise exports and investment. Merchandise exports would grow at a slower pace than previously assessed due to the global economic slowdown, a down cycle of electronic products as well as impacts from trade protectionist measures between the US and China. Tourism would continue to gain traction. Regarding domestic demand, private consumption was expected to continue expanding. Nevertheless, private consumption was restrained by elevated household debt and the overall employment that started to flatten out, with signs of moderation in employment in the construction and export-related manufacturing sectors. 

The annual average of headline inflation would be largely unchanged from the previous projection. The increase in energy prices since the previous meeting offsetted lower-than-expected increase in fresh food prices. Nevertheless, there remained risks to inflation due to the impact of drought. Meanwhile, core inflation would remain broadlyunchanged from the previous projection. The Committee viewed that structural changes contributed to more persistent inflation than in the past. Such changes included the expansion of e-commerce, rising price competition, and technological development which
reduced costs of production.  

Financial conditions over the previous period had been accommodative and conducive to economic growth, with ample liquidity in the financial system. Real interest rates remained at a low level, allowing financing by the private sector to continue expanding. Loans extended to businesses and consumers continued to grow. With regard to exchange rates, the Thai baht depreciated against the US dollar in the intermeeting period in line with regional currencies. Looking ahead, the baht would likely remain volatile due to both domestic and external uncertainties, and thus the Committee would continue to closely monitor exchange rate developments as well as their impacts on the economy. 

Financial stability remained sound overall but there remained a need to monitor risks that might pose vulnerabilities to financial stability in the future. The Committee viewed that the implemented macroprudential measures and the increased policy rate would to some extent help curb accumulation of vulnerabilities in the financial system from the search-for-yield behavior in the low interest rate environment that might lead to underpricing of risks. Nevertheless, the Committee would monitor rising household debt accumulation driven particularly by auto-related loans, growth in assets held by saving cooperatives and the interconnectedness among saving cooperatives, adjustments in the real estate sector after the implementation of the revised loan-to-value ratio (LTV) measure, and leverage by large corporates that could underpricerisks. In the following period, there remained a need to address financial stability risks through a combination of tools, including the appropriate policy interest rate as well as microprudential and macroprudential measures which would need to place greater emphasis on debt serviceability of borrowers.

Looking ahead, the Thai economy was projected to continue to gain traction although the external demand momentum might slow down. The Committee viewed that current accommodative monetary policy stance would remain appropriate and would continue to monitor developments of economic growth, inflation, and financial stability, together with associated risks, in deliberating appropriate monetary policy in the period ahead.


Bank of Thailand l Stefanie Moya | stefanie.moya@tradingeconomics.com
5/8/2019 8:11:36 AM



Thailand Money Last Previous Highest Lowest Unit
Interest Rate 1.75 1.75 5.00 1.25 percent [+]
Interbank Rate 1.88 1.88 5.41 1.35 percent [+]
Money Supply M0 1514979.00 1486822.00 1514979.00 280977.00 THB Million [+]
Money Supply M1 2121.40 2069.30 2121.40 365.90 THB Billion [+]
Money Supply M3 20305.18 20248.59 20305.18 5077.80 THB Billion [+]
Banks Balance Sheet 19320424.00 19154384.00 19320424.00 14874369.00 THB Million [+]
Foreign Exchange Reserves 211000.00 209700.00 215614.70 326.00 USD Million [+]
Loans to Private Sector 4142795.00 4167360.00 4181406.00 1701089.00 THB Million [+]
Deposit Interest Rate 1.29 1.30 13.67 1.02 percent [+]
Central Bank Balance Sheet 7583601.00 7501893.00 7816961.00 2103522.00 THB Million [+]


Thailand Interest Rate

In Thailand, interest rates decisions are taken by The Bank of Thailand’s Monetary Policy Committee. The main interest rate is the 1-day repurchase rate. This page provides - Thailand Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Thailand Interest Rate - actual data, historical chart and calendar of releases - was last updated on May of 2019.

Actual Previous Highest Lowest Dates Unit Frequency
1.75 1.75 5.00 1.25 2000 - 2019 percent Daily




Country Last Previous
Argentina 71.48 May/19
Turkey 24.00 Apr/19
Mexico 8.25 May/19
Russia 7.75 Apr/19
South Africa 6.75 Apr/19
Brazil 6.50 May/19
India 6.00 Apr/19
Indonesia 6.00 May/19
China 4.35 Apr/19
Saudi Arabia 3.00 Apr/19
United States 2.50 May/19
Singapore 2.24 Mar/19
Canada 1.75 Apr/19
South Korea 1.75 Apr/19
Australia 1.50 May/19
United Kingdom 0.75 May/19
Euro Area 0.00 Apr/19
France 0.00 Apr/19
Germany 0.00 Apr/19
Italy 0.00 Apr/19
Netherlands 0.00 Apr/19
Spain 0.00 Apr/19
Japan -0.10 Apr/19
Switzerland -0.75 Apr/19


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