Asia Economy

Thai financial system more vulnerable as coronavirus pandemic hits economy

Key Points
  • On June 24, the Bank of Thailand's (BOT) monetary policy committee voted unanimously to leave the one-day repurchase rate unchanged at a record low of 0.50%.
  • The committee assessed that the monetary policy stance had been eased in a timely manner since the outbreak took place, with three policy rate cuts to a record low, the minutes said.
BANGKOK, THAILAND - JULY 27: A tug boat passes the Wat Arun Buddhist shrine, the Temple of Dawn, on the Thonburi west bank of the Chao Phraya River on July 27, 2018 in Bangkok, Thailand.
David Silverman | Getty Images News | Getty Images

Thailand's financial system has become more vulnerable due to a weaker-than-expected economic outlook amid the coronavirus outbreak, minutes from the latest policy meeting showed on Wednesday.

On June 24, the Bank of Thailand's (BOT) monetary policy committee voted unanimously to leave the one-day repurchase rate unchanged at a record low of 0.50%.

The committee assessed that the monetary policy stance had been eased in a timely manner since the outbreak took place, with three policy rate cuts to a record low, the minutes said.

It was necessary to prepare financial measures to continuously alleviate the outbreak impact, the minutes said.

At the meeting, the BOT cut its 2020 GDP outlook to a record contraction of 8.1% from the previous forecast 5.3% shrinkage.