On October 16, Mr. Sagopo, secretary general of the Monetary Policy Committee of the Bank of Thailand, revealed that at the meeting held that day, the committee voted 5:2 to reduce the interest rate by 0.25% per year from 2.50% per year to 2.25% per year.
Sargopo said that Thailand's overall economic growth will be close to the forecast assessment, while headline inflation will return to the target range by the end of 2024, and the process of reducing household debt-to-income ratio will continue. As a result, the Committee believes that the neutral monetary policy stance remains appropriate to the current economic and inflationary trends, and that the majority agree to reduce the policy rate by 0.25% per annum in line with economic potential.
In addition, the committee expects Thailand's economy to likely grow by 2.7 percent in 2024 and 2.9 percent in 2025, led by tourism and private consumption, which has received additional impetus from stimulus measures, as well as an export sector that has improved due to demand for electronics. All in all, Thailand's economic recovery varies across sectors, such as commodity exports and production in some industrial sectors and SMEs still facing structural pressures.