UPDATE 1-Thai economy faces uncertainty, monetary policy to stay accommodative

 UPDATE 1-Thai economy faces uncertainty, monetary policy to stay accommodative

* Targeted fiscal and financial measures key to recovery-c. bank

* Must ensure baht moves will not impede recovery

* FinMin says monetary policy must support fiscal policy (Adds detail, finance minister’s comment)

BANGKOK, Oct 18 (Reuters) – Thailand’s central bank said on Monday there was high uncertainty facing the economy and monetary policy would remain accommodative to support a recovery from the country’s most prolonged outbreak of the coronavirus.

The Bank of Thailand (BOT) has forecast economic growth of 0.7% this year, bottoming out in the third quarter and growing 3.9% in 2022.

The economy contracted 6.1% last year, with the key tourism sector still struggling.

Thailand’s economic recovery may still lag others and “next year, our baseline is that the financial sector and monetary policy must remain supportive,” Assistant Governor Piti Disyatat told an analyst meeting.

The…

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