BoT to Discuss Whether to Ease Monetary Policy

BANGKOK, February 28 (TNA) - The Bank of Thailand (BoT)’s Monetary Policy Committee will discuss on March 11 whether the monetary policy should be more lenient after it was found that consumption recovers too slowly as majority of people prefer to save, said a senior BoT official. Roong Mallikamas, BoT’s senior director for the Macroeconomic and Monetary Policies Department, said Thailand’s economy for January recovered too slowly and lower than expectations projected by the central bank, especially private consumption on the lack of confidence by households on future income earnings and household debt. Mrs. Roong said private consumption index remained steady at 108.5 on the back of decline in both durable and perishable goods , high household debt falling in income of agriculturists and majority of people preferred to save money. Because of the slow recovery in private consumption, the Monetary Policy Committee will discuss whether monetary policy should become more loosened during its meeting on March 11, she said. On private investment, the business confidence index is at 49, still below than 50 , as manufacturing sector awaits recovery in local demand, said Mrs. Roong. Thailand’s export value in January fell 2.6 per cent from last December as prices of several goods such as petroleum, rubber and chemical products continued declining following the fall in crude oil prices, a slowdown in economy of Thailand’s major trading partners, especially China and fellow members of the Association of Southeast Asian Nations, and the cut of generalised system of preferences on Thai exports by the European Union. BoT believes that Thailand’s exports in 2015 would not suffer contraction. However, revision may have to be made after it has earlier projected that exports would grow 1 per cent this year, Mrs. Roong added. (TNA)