Southeast Asia's second-largest economy continues to recover, but downside risks remains high and it needs the low policy rate, the Bank of Thailand aid.
"The committee voted to maintain the policy rate at this meeting to preserve the limited policy space in order to act at the appropriate and most effective timing," the BOT said. With debt holiday over and asset quality concerns, the BOT might cut the rate in the next quarter, said Kobsidthi Silpachai, head of capital markets research of Kasikornbank.Raising its 2020 economic outlook to a 6.6% contraction from the 7.8% decline, the BOT cut its 2021 outlook to 3.2% growth from 3.6% seen earlier due to sluggish tourism.
The coronavirus spread in a province near the capital Bangkok that has already infected more than 1,000 people since it began at the weekend, in a further blow to the economy still reeling from the global impact of COVID-19.