BANGKOK (Reuters): Thailand's central bank has announced that it has relaxed rules for banks and non-banks to help debtors affected by floods, including lowering the minimum payment on credit cards and providing credit.
Thailand's economy improved in July after slowing down in the previous month, as stronger global demand supported exports, tourism and manufacturing, the central bank said on Friday.
Exports, a key driver of the Thai economy, rose 15.3% in July from a year earlier, while imports also rose 15.8%, resulting in a trade surplus of $0.9 billion, the Bank of Thailand said.
The current account surplus was $0.3 billion in July, down from June's $2.0 billion surplus due to the trade surplus narrowing in the month, the BOT said.
The central bank will ensure the baht is not too volatile, assistant governor Chayawadee Chai-anant told a press conference.
Private consumption increased 0.3% in July from the previous month while private investment rose 6%, the central bank said.
Economic recovery was gradual, but some sectors were under pressure from structural issues and high inventories resulting in depressed earnings for businesses and households, it said.
The BOT said it is closely monitoring budget spending and government policies, the recovery of exports and manufacturing, and geopolitical conflicts.
Annual growth in South-East Asia's second-largest economy increased to 2.3% in the April-June quarter, but analysts said fiscal policy uncertainty clouded the outlook.
The central bank has forecast economic growth of 2.6% for this year, after last year's 1.9% expansion, which lagged regional peers.
The central bank left its key interest rate unchanged at 2.50% for a fifth straight meeting on Aug. 21, saying it wanted to see if the new prime minister would make changes to economic stimulus policies.
The central bank has said the policy rate was not high compared with global rates but it was ready to adjust settings if needed. The next BOT rate review is due on Oct. 16.
