BoT still upbeat about economic growth despite political turmoil

BANGKOK, May 28 (TNA) – The Thai economy is likely to grow at an expected range of 4.3-5.8 per cent this year since exports continue growing satisfactorily, according to the Bank of Thailand (BoT).

BoT Governor Tarisa Watanagase said although the economic conditions, particularly the tourism and local spending, had been affected by the political crisis, the economy should manage to expand between 4.3-5.8 per cent as projected earlier because the exports, which are a key driving force for the economic growth, are set to enjoy the continued growth.

However, the central bank must wait and see the actual economic indicators closely for a time before assessing  their clear impact on the overall economy.

She said the monetary policy applied by the bank now remains suitable to boost economic growth.

Even so, the Monetary Policy Committee will pay attention to the latest economic factors before deciding whether the policy interest rate should be maintained at 1.25 per cent at its meeting on June 2.

Mrs Tarisa said the central bank had continued to discuss with financial institutions ways to help entrepreneurs affected by the recent political violence. Simultaneously, the state sector had extended additional special loans to the affected people.

With the implementation of these rescue measures by all parties concerned, she expressed confidence that the country’s economy would be able to continue growing.

Asked to comment on the weakening of the baht after foreign investors dumped shares and remitted money to their countries, she said the currency’s fluctuations stemmed from both internal and external factors.

All parties concerned in the currency trading must be careful. (TNA)