The Bank of Thailand's Monetary Policy Committee foresees further economic growth but is concerned over rising bad loans in the short term and search-for-yield behaviour increasing. (Bangkok Post file photo)The Bank of Thailand's rate-setting committee foresees further economic growth but is concerned over rising bad loans in the short term and search-for-yield behaviour increasing amid the low-interest-rate environment. "The committee expressed concerns over the high level of non-performing loans (NPLs) that will remain elevated in the short term," according to the minutes of the Monetary Policy Committee (MPC) from its Sept 27 meeting, released on Wednesday. The panel also raised its economic growth forecasts to 3.8% for this year and next, increases from 3.5% and 3.7%, respectively, largely because of better than expected growth in the second quarter and robust exports. The committee said it would monitor the implications of structural changes for inflation dynamics as well as monetary policy conduct.

Source: Bangkok Post October 12, 2017 01:52 UTC