Thailand's key interest rate remains unchanged

BANGKOK, March 20 (TNA) - The Bank of Thailand (BOT) has maintained its key interest rate unchanged at 1.75 per cent annually and assessed that the growing national economy is within its potential. The developments were announced by the secretary of the central bank's Monetary Policy Committee (MPC), Titanun Mallikamas, after the MPC's latest meeting on Wednesday. Titanun told journalists that the MPC made the decision with its unanimous vote, while also slightly lowering its projection of Thailand's gross domestic growth in 2019 to 3.8 per cent year-on-year, from its earlier forecast of 4 per cent year-on-year, due mainly to the country's now anticipated lower export growth at about 3 per cent year-on-year caused by impacts from the unsettled trade war between the United States and China and a global economic slowdown. Titanun quoted the MPC as stating although it has slightly lowered its projection of Thailand's GDP growth this year, the national economy appears to keep expanding within its potential, stimulated mainly by the growing domestic private consumption and investment that are estimated to expand by about 3.9 per cent year-on-year and 4.4 per cent year-on-year in 2019 despite a lower-than-targeted-public spending caused partly by the delayed implementation of new investment projects of some state enterprises. The secretary also quoted the MPC as cautioning that risk factors remain for the Thai economy in 2019, including those in the domestic property sector and the direction of domestic saving cooperatives and household debts, which need to be addressed through appropriate financial, microprudential and macroprudential measures. Meanwhile, the MPC has updated its projection that Thailand's GDP and export growth in 2020 should stand at about 3.9 per cent year-on-year and at about 4.1 per cent year-on-year. (TNA)