Thai Central Bank Maintains Key Rate at 0.5%, But Cut 2021 GDP Outlook 

The Monetary Policy Committee (MPC) on Wednesday (August 4, 2021) voted 4:2 to maintain the policy rate at 0.50%. The committee should keep a close eye on vaccination distribution and the spread of the Covid-19 pandemic in Thailand and abroad.

Additionally, the MPC lowered its prediction for GDP growth this year to 0.7% before rebounding to +3.7% in 2022. However, the committee warned of the major impact a resurgence of the outbreak would have on economic recovery over the next year.

Meanwhile, the Joint Standing Committee on Commerce, Industry and Banking has cut Thailand’s economic growth in 2021 to -1.5% – 0.0%, depending on the severity of the Covid-19 outbreak and the government’s additional relief package.