The MPC voted 6:1 to maintain the policy interest rate at 2.50 percent per year.

Bangkok, The MPC Committee voted 6 to 1 to maintain the policy interest rate at 2.50 percent per year, with 1 vote agreeing to reduce the policy rate by 0.25 percent per year, which the BoT The economy is expected to grow 2.6 percent this year, while next year it is expected to grow 3.0 percent. Mr. Piti Disayathat, secretary of the Monetary Policy Committee (MPC), announced the results of the MPC meeting that the committee voted 6 to 1 to maintain the policy interest rate at 2.50 percent per year, by 1 vote. It is seen that the policy interest rate should be reduced by 0.25 percent per year to be in line with the economic potential that is expanding lower due to clearer structural factors. And it will help relieve the burden of the debtor to some extent. The Thai economy is likely to expand from domestic demand and the tourism sector. It is expected that this year there will be 35.5 million foreign tourists entering Thailand. Next year, it is expected that there will be 39.5 million foreign tourists, whil e exports will expand. at a low level in the textile and chemical products group Some export product groups are under additional pressure from increased competition, such as solar panels and automobiles. As for the export product group that has a better trend, it is Electronics group, causing the BoT to predict that the Thai economy will grow 2.6 percent this year, while next year it is expected to grow 3.0 percent. This year, it is expected that the value of exports will grow 1.8 percent when compared to last year. Next year, exports are expected to grow by 2.6 percent, while the value of merchandise imports is expected to grow by 3.1 percent compared to last year. Next year, the value of merchandise imports is expected to grow by 2.0 percent. Inflation is likely to gradually increase and is estimated to return to the target range from the 4th quarter of 2024. Most committee members agree that the current interest rate is at a level consistent with the expansion of the economy. that leans towards the potent ial and maintenance of economic and financial stability Therefore, it is considered appropriate to maintain the policy interest rate at this meeting. This year's general inflation will be at 0.6 percent. Next year, general inflation is expected to be at 1.3 percent, while core inflation is expected to be at 0.5 percent and 0.9 in 2024 and 2025, respectively, by general inflation rate Recently it came back positive. and is likely to increase in line with domestic energy prices from the gradual reduction of diesel price subsidies. Meanwhile, the supply pressure that keeps fresh food prices low is likely to subside. General inflation will gradually return to the target range from the 4th quarter of 2024, with the expected inflation rate in the medium term remaining at a consistent level. with the target frame In terms of overall financial condition, it is stable. The exchange rate of the baht against the US dollar depreciated in line with the direction of the US Federal Reserve's monetary policy. together with factors in the country in the past Meanwhile, Thai bond yields rose somewhat after the market revised its forecasts for Thailand's monetary policy. The private sector's borrowing costs through commercial banks are similar to before. Overall business credit expanded. Meanwhile, household credit expanded at a slower pace. Especially hire purchase loans and credit cards as credit quality deteriorates. The Committee is concerned about the high level of household debt. and saw that lending should be consistent with the process of reducing the ratio of household debt to income (debt deleveraging) in order to strengthen the stability of the financial system in the long run. Therefore, we support the BoT's policy that allows financial institutions to grant loans based on the borrower's ability to repay debt. Along with debt restructuring to help debtors with repayment problems, the Committee is also aware of the ongoing problem of access to credit for SMEs. Therefore, we support the use of targeted measures such as loan guarantee measures. To help increase potential SMEs' access to credit, which is necessary for economic expansion within the framework of monetary policy aimed at maintaining price stability. along with taking care of the economy to grow sustainably and maintain stability of the financial system Most of the directors assessed that the interest rate Currently, it is consistent with the improving economic and inflation trends. as well as facilitating the maintenance of long-term economic and financial stability However, we still need to follow the development of the economy, especially the recovery of the industrial sector. Exports and government measures By the committee Monetary policy will be considered to be appropriate to the economic and inflation trends going forward. Source: Thai News Agency