The Monetary Policy Committee (MPC) has concluded its final meeting of 2024, deciding to maintain the policy interest rate at 2.25% per annum. The committee stated that this rate supports long-term economic stability, with inflation aligning with its target. It also emphasized the need for a robust monetary policy framework to address rising uncertainties.
Thailand’s economy is projected to grow by 2.7% in 2024 and 2.9% in 2025. Growth will be driven by improvements in tourism, private consumption, and exports of electronics and machinery. However, recovery in the industrial sector remains sluggish, particularly in automotive manufacturing, which faces competitiveness challenges. This uneven recovery has contributed to disparities in household income growth.
Inflation is forecast to remain low, at 0.4% in 2024 and 1.1% in 2025, due to stable global oil prices. Energy-related inflation is expected to stay subdued, keeping the medium-term inflation outlook within target levels. However, global trade policies and geopolitical risks continue to create economic uncertainties.
Credit growth has slowed recently, reflecting reduced investment demand in key sectors. Non-performing loans (NPLs) have increased following the end of COVID-19 relief measures, with more seized vehicles entering auctions. The rise of electric vehicles (EVs) has further impacted the automotive loan market, while SMEs in high-risk industries face tighter credit conditions.
The MPC is closely monitoring credit expansion and government initiatives such as the “Khunsoo Rao Chuay” program. This program aims to alleviate debt for vulnerable groups, support financial stability, and aid sectors under economic pressure.
Source: NNT
