BOT:Thai economy should now grow by 4.1% in 2018

BANGKOK, April 10 (TNA) - The Bank of Thailand (BOT) has adjusted upward its projected figure of the national economic growth this year to 4.1 per cent year-on-year, from the 3.9 per cent year-on-year it earlier forecast. BOT Governor Veerathai Santiprabhob told journalists that the central bank's Monetary Policy Committee (MPC) has recently made the adjustment of Thailand's gross domestic product (GDP) forecast figure in 2018, thanks to growing Thai exports and tourism. The BOT governor said, however, that the Thai central bank needs to keep its relaxing financial policy intact to cushion the national economic growth, especially in the micro aspect, in which the grassroots economy and small and medium-sized enterprises (SMEs) need to be specially taken care. In response to reports that the United States is monitoring and concerned over the Thai central bank's alleged intervention in the currency market for national trade benefits, the BOT governor revealed that BOT has sent a letter to the US Department of Treasury to clarify that the allegation is groundless. The BOT governor explained that the Thai central bank has taken limited actions while handling the currency market during periods of high captial inflows in order to only contain the value of the Thai baht not to seriously affect the national economic recovery. The BOT governor pointed out that Thailand is a longstanding economic ally with the United States, especially in the trade and investment aspects, but the Thai central bank is following up an updated report of the US Department of Treasury regarding to the alleged issue. Meanwhile, Predee Daochai, President of Bangkok-based Kasikornbank, also foresaw that the Thai economy should grow by about 4 per cent year-on-year in 2018, but risk factors remain against the national economic expansion, including impacts from possible tit-for-tat trade protectionist measures between Washington and Beijing, the rising key US interest rate and capital inflows and outflows. (TNA)