The Bank of Thailand (BoT) has kept its key interest rate unchanged, keeping it at a record low of 0.5% yesterday (May 5), as the economy struggles with a third wave of Covid-19, NNT said today.
The central bank said in a statement that economic growth is likely to slow sharply due to the third Covid-19 wave, and monetary policy will remain accommodative to support economic activity.
The BoT reiterated that the limited policy room to manoeuvre should be reserved for use at the most effective time. The latest outbreak has slowed domestic activity in the tourism-dependent economy, at a time when Thailand was preparing to reopen to foreign tourists and global vaccine rollouts paved the way for air travel to pick up.
According to the BoT, the number of foreign tourists will be fewer than the 3 million projected three months ago. That compares with nearly 40 million in 2019, before the pandemic.