Full recovery key to increase BoT key rate

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Full recovery key to increase BoT key rate

Seven missions drive economic growth

Mr Arkhom says the central bank needs to assess the economic recovery.

If the central bank wants to raise the policy rate, it must first be convinced that the economy is in full recovery, said Finance Minister Arkhom Termpittayapaisith.

He made the remark during the “2022 Next Economic Chapter: New Challenges and Opportunities” seminar on Wednesday organized by Krungthai Bank (KTB).

This year, the US Federal Reserve is expected to raise its key rate to rein in rising inflation, Arkhom said. The Bank of Thailand must consider whether it wants to follow suit, he said.

Mr Arkhom said the government was focusing on seven missions to push for 4% economic expansion this year. Missions include promoting a digital economy in the private and public sectors.

DIGITAL POWER

Speaking at the same event, Digital Economy and Society (DES) Minister Chaiwut Thanakamanusorn said the government aims to push digital technology-focused companies to contribute 30% of GDP by 2027, compared to 17% currently.

He said Thailand has several advantages over other ASEAN countries, especially the development of ICT infrastructure thanks to the country’s digital transformation roadmap and the expansion of the 5G network.

Over the past few years, the DES ministry has rolled out free high-speed internet access to 74,987 rural villages and improved the capacity of undersea cables to position the country as the digital hub of ASEAN, Chaiwut said.

According to a Hootsuite report in 2021, Thailand had 90.6 million mobile connections, or 129% of the population, 48.5 million internet users, or 69.5% of the population, and 55 million active users. social media, or 78% of the population. .

Thailand’s average fixed broadband service speed was 308.3 megabits per second, second in the world, while the average mobile broadband speed was 51.7 Mbps, ranking 21st in the world.

Thais spend an average of 8 hours and 44 minutes a day on the internet, ranking ninth in the world.

To boost the country’s economic recovery from the pandemic, he said the Ministry of DES is stepping up efforts to build digital infrastructure capacity, including cloud-based data centers; pushing digital-focused businesses to contribute 30% of GDP by 2027; and work to thwart online fraud, threats and cybercrime.

Mr. Chaiwut said it was essential to build public trust in digital services, while cybersecurity measures were essential to combat online crimes, threats and fraud.

Last year, more than 7,000 complaints were filed with the DES Complaint Center regarding online violations.

Speaking at the same seminar, Payong Srivanich, chairman of the Thai Bankers Association (TBA) and chairman of KTB, said the banking industry is supporting the promotion of the digital economy.

Thailand has made a lot of progress in digital banking. Mobile banking transactions soared to 15 billion in 2021 from 1.3 billion in 2017.

Transactions through the country’s digital payment platform, PromptPay, grew to 9.4 billion in 2021, a 10-fold increase from 2017.

He said digitalization is a key factor in reducing financial inequality, especially for the small and medium enterprise (SME) segment.

According to central bank data, about 60% of total SMEs cannot access bank loans due to insufficient financial data.

Digital information, alternative credit scoring and digital loans will help SMEs better access financial resources, Payong said.

The TBA, in conjunction with related parties in government and the private sector, collected credit information from commercial banks, specialized financial institutions, non-banks, credit unions and others. -he declares.

The move is part of a government effort to tackle the country’s household debt and the TBA is supporting the government and the Bank of Thailand in this area, Payong said.

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