Thai economy recovers as financial conditions tighten – Central Bank minutes | The mighty 790 KFGO

BANGKOK (Reuters) – Thailand's economic recovery is intact but structural obstacles could limit the global economy's positive impact on exports and credit quality needs to be monitored, minutes from the Bank of Thailand's Nov. 29 monetary policy meeting showed on Wednesday .

The BOT said financial conditions had tightened and it was monitoring the credit quality of small businesses and households.

At the meeting, the Monetary Policy Committee voted unanimously to keep the one-day repurchase rate unchanged at 2.50%, the highest level in a decade, after raising it by 200 basis points since August last year to curb inflation.

The committee said the policy rate was appropriate for long-term growth but saw an urgent need to stimulate the economy, including infrastructure investments and workforce skills programs, minutes show.

Southeast Asia's second-largest economy grew a much slower-than-expected 1.5% year-on-year in the July-September quarter, the slowest pace this year, reflecting weak exports and government spending.

Prime Minister Srettha Thavisin said the economy was in “crisis”.

The central bank's next interest rate review will be on February 7, when most economists expect no change in policy.

($1 = 35.6700 baht)

(Reporting by Orathai Sriring and Chayut Setboonsarng; Editing by Kanupriya Kapoor)