BANGKOK- Thailand’s economy was seen growing slightly more than 2.5 percent this year, less than earlier expected, minutes of the Bank of Thailand’s February 26 monetary policy meeting showed on Wednesday, with its economic recovery becoming more uneven.
At the meeting, the BOT’s monetary policy committee voted 6-1 to cut the one-day repurchase rate by 25 basis points to 2.00 percent. One member voted to maintain the rate.
The surprise quarter-point rate cut followed a hold in December and a similar reduction in October.
The bank saw economic growth at 2.9 percent in December.
The committee said growth could be lower than previously anticipated, with higher risks going forward, according to the minutes, and that the majority of members considered lowering rates to ease credit conditions and with 2.00 percent providing sufficient policy space.
Thailand’s household debt stood at 16.34 trillion baht ($486 billion) at the end of September 2024, or equivalent to 89.0 percent of gross domestic product, among the highest levels in Asia.
The government sees household debt as significant constraint on consumption and growth.
“Economic recovery became more uneven across sectors,” the central bank minutes said, with tourism and exports expanding. “Conversely, manufacturing sectors facing structural challenges, especially the automotive-related and real estate industries, showed further deterioration.”
