If the bank's forecast takes hold, this year's economy will have a worse downturn than the global financial crisis in 2009, when the economy contracted 0.7%. The bank earlier forecast the economy would grow 1.8% this year. The government recently launched relief measures for virus-hit individuals, small businesses and companies, injecting 400 billion baht into the economy. "While the relief measures have provided an initial boost to sentiment, they may have a limited impact on private consumption or the economy as a whole. "While we expect the economic situation to require the central bank to cut rates to 0.25% by year-end, we see little room for zero or negative rates against this backdrop.

Source: Bangkok Post March 19, 2020 23:48 UTC