BANGKOK, Nov 30 — Thailand’s central bank on Wednesday decided to raise its key policy rate for a third straight time, by 0.25 percentage points, in an effort to balance efforts between easing inflation and supporting economic growth, reported Xinhua.
The Bank of Thailand (BOT) monetary policy committee voted unanimously to raise the policy rate from one per cent to 1.25 per cent, effective immediately.
The move came after a 0.25-percentage-point rate hike announced at the monetary policy committee meeting on September 28 and another one on August 10, the country’s first rate hike since late 2018.
Wednesday’s rate hike, in line with market expectations, brought the key policy rate to its highest level since February 2020.
Thailand’s economic recovery has continued to gain traction, with tourism and private consumption remaining key economic drivers while the financial system is resilient, but the headline inflation is expected to be higher than the previous projection for 2023 due to domestic energy prices, the BOT said in a statement on its website.
It said a gradual policy normalisation remains an appropriate course for monetary policy given the growth and inflation outlook, adding that the size and timing of policy normalisation will be adjusted if needed.
Thailand’s inflation growth slowed to 5.98 per cent in October, from 6.41 per cent in September and a 14-year-high of 7.86 per cent in August.
The central bank expected headline inflation to rise 6.3 per cent year on year in 2022, before declining to 3 per cent in 2023 and 2.1 per cent in 2024. It expected the economy to grow 3.2 per cent in 2022, 3.7 per cent in 2023 and 3.9 per cent in 2024.
— Bernama
