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Thailand’s economy will grow at a slower pace than previously predicted and lower than its potential, according to the Central bank’s minutes of the meeting.
The Central Bank has already cut interest rates to record low due to the increasing risks of the virus outbreak, delayed government spending, and drought.
The monetary policy committee opted to cut the policy rate by 25 basis points, to 1.00% via unanimous vote.
Thailand stands as second most vulnerable country, next to Hong Kong, on the epidemic in China as it mainly relies on Chinese tourists and trade, analysts at Nomura said.
In December, the Bank of Thailand forecast a 2.8% growth this year, but cut it down to 2% recently.
The Bank of Thailand Governor Veerathai Santiprabhob revealed that if it proves necessary, there is still room for policy to aid economic growth.
The country’s trade-reliant economy only grew 2.4% in previous year due to weakening exports and sluggish investment caused by global trade tensions.
2020 and 2021 headline inflation were estimated to be less than the 1%-3% target range.
The BOT is considering to put additional measures in stimulating investment and imports in order to reduce account surplus.
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