Thai economy to grow at potential rate by early 2025, central bank says

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Thai economy to grow at potential rate by early 2025, central bank says
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Thai economy to grow at potential rate by early 2025, central bank says

BANGKOK - Thailand's economy is expected to grow at its potential rate by late this year or early in 2025, while the policy interest rate is neutral and not undermining the inflation target, central bank officials said on Wednesday.

"If there are shocks, either the economy has accelerated a lot... or there is a negative shock such as very bad exports, we will have to reassess ," he added. The BOT has forecast economic growth of 2.6% this year and 3% next year. Last year's expansion of 1.9% lagged regional peers. On Monday, Piti also said the interest rate level was"quite robust to many scenarios and inflation was not a problem for households and businesses.

Surach said the annual headline inflation rate in June was expected to be less than May's 1.54%, which was driven by low base effects.

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