The Bank of Thailand’s Monetary Policy Committee (MPC) voted unanimously to raise the policy rate by 0.25 percentage point from 1.00 to 1.25 percent, effective immediately, announced MPC Secretary, Piti Disyatat.
The BoT said in its statement that Thai economic recovery has continued to gain traction. Tourism and private consumption will continue to be key economic drivers going forward and help alleviate the impact of global slowdown on the Thai economy.
Headline inflation is expected to be higher than the previous projection for 2023 due to domestic energy prices. However, it is still expected to decline and return to the target range within 2023.
The Committee deems that gradual policy normalization remains an appropriate course for monetary policy given the growth and inflation outlook, and thus votes to raise the policy rate by 0.25 percentage point at this meeting.
The Thai economy is projected to continue growing at 3.2 percent in 2022, 3.7 percent in 2023, and 3.9 percent in 2024. (TNA)