The Bank of Thailand (BoT) has decided to hold its key interest rate at 2 percent as the country’s economy shows signs of improvements.

In June, the bank lowered its economic growth forecast for this year to just 1.5 percent from 2.7 percent due to the political unrest that affected consumer confidence, domestic demand and the tourism sector, which accounts for one tenth of the country’s economy.

Thailand’s exports, accounting for over 60 percent, have remained weak, even though the political crisis did not impact plants and ports and the global economy has improved.

Domestic demand will soar in the second half of the year, while export and tourism activities will see recovery, the bank forecasts.-VNA