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Thai monetary policy should remain accommodative to help economy

BANGKOK, July 17 (Reuters) - Thailand’s central bank said monetary policy should remain accommodative for some time to support an economy hit by the coronavirus pandemic and help inflation return to target.

The Monetary Policy Committee (MPC) expects headline inflation - projected at minus 1.7% this year - to get back to the 1%-3% target range in the second quarter of 2021, the central bank said in an open letter to the finance minister dated July 8.

“The accommodative monetary policy should be maintained for some period of time to bolster the economic recovery and domestic purchasing power after the COVID-19 spread is under control,” it said.

The MPC has cut the policy rate three times this year to a record low of 0.50%. It will next review policy on Aug. 5.

For the full letter, click here

Reporting by Orathai Sriring Editing by Ed Davies