Bank of Thailand denies ‘interfering’ in baht value

Assistant Governor Monetary Policy Line Bank of Thailand or BoT Piti Disayathat stated that the exchange rate fluctuates. The weak baht leads other currencies in the region It’s a fluctuation. The BoT is keeping an eye on it. What is especially noticeable is that we do not want to cause stagnation. Little liquidity, which has not been seen in the past It is an adjustment that, although fluctuating, is reasonable.

The recent weakening of the baht’s value is due to the Fed continuing its current monetary policy for a longer time, affecting all countries. As for specific seasonal factors in Thailand that cause the baht to tend to weaken, the BoT has been keeping a close eye on it. It has not yet reached the stage of needing policy action.

For 2024, the Thai economy is likely to expand higher than the previous year. But structural problems still put pressure on economic growth.

The tourism sector improved from both the expected number of tourists of 35.5 million and expenditures per person, but spending tends to be more concentrated in certain categories.

Private consumption continues to be an important support force for the Thai economy, with expansion still concentrated in high-income groups.

Government spending decreased significantly in 1Q24 due to the delayed enactment of the Budget Act. But it is expected that there will be a return to accelerating disbursement during the rest of the year.

The export sector will gradually recover. and returned to expand in the second half of this year. However, structural problems put pressure on the recovery of some product categories, such as chemicals.

Short-term inflation is low due to supply side factors and government measures to help with living costs, with inflation for May turning positive. and is likely to return to the target framework at the end of this year. And competition from imported goods is a structural factor that will pressure inflation to remain low in the period ahead.