Uncertainty around the Thai economy has significantly increased primarily due to the unclear impact of possible U.S. economic policies, minutes of the Bank of Thailand's Dec. 18 monetary policy meeting showed on Thursday. At the meeting, the BOT's monetary policy committee unanimously voted to leave the one-day repurchase rate unchanged at 2.25 per cent, after a surprise cut at the previous review in October.

The MPC deemed it appropriate to hold steady given the heightened uncertainties, the minutes said. "Maintaining sufficient monetary policy space to respond appropriately at the right time was deemed essential to maximise the effectiveness of monetary policy," the minutes said. At the December policy review, the central bank maintained its forecast for economic growth at 2.7 per cent in 2024 and 2.9 per cent in 2025, and the minutes showed the committee felt the overall economy was expanding despite a decline in credit growth.

The committee said it was crucial to monitor credit quality and credit growth developments among sectors where recovery was slow, as well as for the impact on the broader economy. The central bank expected headline inflation of 1.1 per cent in 2025, near the bottom of its 1 per cent to 3 per cent target range, and said medium-term inflation expectations were within the target range. The next rate review is on Feb. 26.