BOT Warns of Financial Risk, Seeing Economy Won’t Return to Pre-Covid19 Levels until 2022

Monetary Policy Committee, Bank of Thailand on August 5, 2020, has assessed that the Thai economy would gradually recover, in line with the relaxation of COVID-19 containment measures in Thailand and the gradual improvement in global economic activities, and would monitor risks of the second wave of the outbreak. 

 

Meanwhile, headline inflation would be negative this year but would return to the target in 2021 as previously assessed. Financial stability was more vulnerable given the economic outlook. 

 

In the matter of overall economic activities, BOT viewed that it would take at least two years before returning to the pre-pandemic level. Therefore, the Committee voted unanimously to maintain the policy rate at 0.50%.