The Bank of Thailand's Monetary Policy Committee voted 5–2 to keep the policy interest rate unchanged at 2.50% at its 7 February 2024 meeting, with two members favouring a 25 basis-point cut, despite pressure from the government to lower borrowing costs and revive an economy that the committee expected to grow by 2.5–3% in 2024 as exports and manufacturing slowed.
Thai officials had called for a rate reduction in the weeks leading up to the meeting.
GROWTH OUTLOOK
Weaker export demand, a slower-than-expected rebound in international tourism receipts and weak manufacturing all weighed on activity, although private consumption remained a bright spot.
Senior government officials expressed the view that the Bank of Thailand should act to ease financial conditions and support growth.
The committee majority maintained, however, that the current rate level was appropriate given its assessment of the inflation outlook and the balance of risks to growth and price stability. The committee indicated it would continue to monitor incoming economic and financial data carefully before making any adjustment and said it would take the growth and inflation outlook into account in future policy deliberations, noting heightened cyclical and structural uncertainties.
POLICY GUIDANCE
The rate remains at 2.50%, and the committee offered no explicit forward guidance on the timing or direction of any future adjustment.