Thailand’s monetary policy should remain accommodative to support an economic recovery that remains weak and uneven, with growth below potential, according to the October policy meeting minutes. The Committee emphasized that monetary policy primarily manages aggregate demand and economic stability, while fiscal and targeted government measures are needed to address structural challenges, inequality, limited SME financing, and weak competitiveness. Members also cautioned that maintaining low interest rates amid global monetary policy divergence could heighten financial stability risks through capital flows, exchange rate volatility, and domestic investor behavior, although Thailand’s external stability remained strong with no significant signs of vulnerability. The committee voted to keep the policy rate unchanged, noting that oil prices and El Niño could intensify inflationary pressures and cost pass-through, warranting close monitoring.
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