BANGKOK: Thailand’s central financial institution stated on Monday the nation’s economic system may see lower growth within the first half of 2022 than a baseline situation due to uncertainties brought on by the Omicron variant of the coronavirus.
While Southeast Asia’s second-biggest economic system has been supported by home spending and a rebound in tourism, a rising outbreak of Omicron remained a key danger, the Bank of Thailand stated in a press release.
Thailand is anticipated to deliver the Omicron outbreak below management inside the first quarter of 2022, it stated.
“There are nice draw back dangers within the first half of 2022 due to the Omicron outbreak, which may very well be extra extreme and longer than anticipated,” Sakkapop Panyanukul, a senior director on the Bank of Thailand, instructed a gathering with analysts.
Thailand’s economic system is forecast to develop by 3.4% in 2022, the central financial institution stated final week.
Financial stability for households and companies remained fragile, mirrored by excessive ranges of family and company debt, central financial institution knowledge confirmed.
Non-performing loans (NPL) had been seen growing barely, Sakkapol stated, including that the financial institution will roll out focused measures on this space.
Inflation can be seen growing quickly within the first half of 2022, however would nonetheless be inside goal, Piti Disyatat, an assistant governor on the central financial institution, instructed the assembly.
“If inflation wants to be managed, growing rates of interest will likely be our predominant device,” Piti stated.
The Bank of Thailand can be prepared to intervene in markets if the baht foreign money grew to become too unstable, he stated.
The baht hit 33.14 towards the U.S. greenback on Jan. 5, the very best since late November, although eased to 33.67 on Monday.
The central financial institution’s financial coverage committee final month saved the benchmark rate of interest at a document low of 0.50% for a thirteenth consecutive assembly to help the economic restoration.
Going ahead, the committee will solely meet six occasions a yr, or each seven to 10 weeks, down from eight occasions or each six to eight weeks beforehand.
“Meeting regularly creates pointless burden for the monetary market to anticipate what’s coming,” stated Piti.
The committee is due to meet for the primary time this yr on Feb. 9. – Reuters
