BANGKOK : Thailand's central bank will focus on creating conditions for expanding debt relief and credit for firms to boost the flagging economy, the bank's chief said, adding that already low interest rates had become a blunt tool for many policymakers.
Curbs to contain COVID-19 have crippled activity in Thailand's dominant in tourism sector, which in a normal year accounts for 11-12per cent of GDP and 20per cent of employment, though increased exports and fiscal measures have lent the economy some support. It was the first split decision since a rate cut in May 2020, and some analysts believe a further cut is possible this year. The BOT holds its next policy meeting on Sept. 29.Asked about the possibility of a cut, he stressed that most of the monetary policy committee had so far not seen a need."There are more direct, more targeted measures that might more appropriately address the kind of things that are hindering our economic recovery.
The BOT, which has flagged the fact that only about 7per cent of its 66 million population have been fully vaccinated as another growth risk and now expects just 150,000 foreign tourists to visit this year, last week cut its 2021 growth forecast to 0.7per cent.