According to BOT Governor Sethaput Suthiwartnarueput, there is minimal need for stimulus measures as long as the nation’s economic recovery is still intact, and fiscal and monetary policies should be normalized for stability as long as inflation risks remain.According to him, the country’s long-term growth potential is around 4%, and the BOT’s anticipated growth for this year is quite near to that level.
But he said that the BOT anticipates that in the first half, the economy will expand by 2.9% from a year earlier, with exports expected to decline by 7.1%.
In the second half of the year, when exports should increase by 4.2%, Sethaput continued, growth is anticipated to pick up to 4.3% year over year.
BOT predicts that this year will see 28 million foreign visitors.
The second-largest economy in Southeast Asia hasn’t recovered as quickly as some of its neighbors in the region, but growth is anticipated to go up as a result of a comeback in tourism.
In contrast to the approximately 40 million visitors who arrived before the pandemic in 2019, the BOT anticipates 28 million foreign visitors this year.
According to him, 2023’s first and second halves would see headline inflation of 3.3% and 2.5%, respectively, after it dropped to 2.83% in March.
Although the BOT’s target range of 1% to 3% was once again reached in terms of headline inflation last month, the BOT governor noted that inflation concerns continued and required close observation.
In an effort to ease price pressures, the BOT this month increased its benchmark rate by a quarter point to 1.75%. On May 31, when the rate will be reviewed again, experts anticipate another rate increase.
higher than regional peers in the baht’s volatility
The baht’s volatility, according to Sethaput, was higher than that of its regional counterparts and was influenced by outside influences, although its levels were still relatively low.
Additionally, he stated that the BOT plans to meet with the Chinese central bank the next month and will promote increased usage of the yuan for commerce.
Additionally, Sethaput noted that the BOT has postponed the second quarter’s scheduled release of virtual bank regulations until the third quarter of this year.
