Thailand’s Central Bank Raised Key Policy Rate As Economy Recovers

BANGKOK, Thailand’s central bank, yesterday, decided to raise its key policy rate for the fourth consecutive time, by 25 basis points, in an effort to curb high inflation and support economic recovery.

The Bank of Thailand monetary policy committee voted unanimously, to raise the policy rate from 1.25 percent to 1.50 percent, effective immediately.

“The Committee deems that a continuing gradual policy normalisation is an appropriate course for monetary policy, consistent with the growth and inflation outlook,” the central bank said in a statement, published on its website.

The move came, after 25-basis-point rate hikes announced at the monetary policy committee meetings on Nov 30, Sept 28 and Aug 10 last year, the country’s first rate increase since the late 2018.

According to the statement, Thailand’s economic recovery has gained traction, with private consumption and tourism remaining key economic drivers, thanks to the return of Chinese tourists, while the financial system is resilient.

Source: Nam News Network

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