According to the minutes from the Bank of Thailand’s monetary policy meeting held on August 21st, financial conditions have become more restrictive for small and medium-sized enterprises (SMEs) and certain households.
The central bank emphasized the importance of monitoring private investment and consumption, as the economy’s recovery was reported to be inconsistent across various sectors.
During the August 21st meeting, the monetary policy committee decided by a vote of 6-1 to maintain the one-day repurchase rate at 2.50% for the fifth consecutive meeting, with one member advocating for a quarter-point reduction.
The next review of the interest rate is scheduled for October 16th. The current inflation target range in Thailand has effectively anchored medium-term inflation expectations while allowing flexibility to accommodate fluctuations in the supply side. A flexible inflation target range is deemed crucial in ensuring price stability over the medium term.
