Thailand monetary policy September 2022

At the September 28 meeting, the Monetary Policy Committee (MPC) of the Bank of Thailand (BoT) raised the interest rate to 1.00% from 0.75%. This move was the second consecutive increase and was unanimous.

The bank decided to tighten its position due to the high inflation. The Bank of Canada expects inflation to average 6.3% in 2022 before returning to the 1.0-3.0% target range in 2023. Next year, the Bank expects inflation to reach 2.6%, thanks to easing supply-side pressures. and decline. Oil prices. The space to rise was provided by the strong economic recovery, fueled by household spending and the revival of the tourism sector.

“The policy rate should be normalized in a gradual and deliberate manner to a level consistent with long-term sustainable growth,” the bank said in its statement. This means further increases in line with the expectations of committee members.

The next monetary policy meeting is scheduled for November 30.

Members of the FocusEconomics Consensus forecast committee are currently forecasting the policy rate for the end of 2022 at 1.08% and 2023 at 1.67%.

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