From the report on 28 September 2022, the monetary committee voted to raise the interest rate by 0.25%, increasing from 0.75% to 1.00%. The factor driving to increase in interest rate in Thailand is the FED announcement to raise the interest rate by 0.75%, reaching 3.25%, this cause-effect USD to be appreciated and other currencies to depreciate.
Nonetheless, BOT governor, Sethaput Suthiwartnarueput, told reporters that the Bank of Thailand has been following up on the situation of the Thai Baht, and promptly acted on excessive moves, meanwhile they didn’t apply the policy to regulate the exchange rate and Thailand has learned from the economic crisis in 1997.
Moreover, this year’s Thai economy will continue to recover from consumers and tourists, for the export will be affected by the economy’s world recession. The bank of Thailand forecasts economic growth in 2022 to be 3.3%, and in 2023 to grow at 3.8%, which means the economy of Thailand will be recovered slowly more than expected. Meanwhile, the inflation rate will be reduced to 1-3% in the Bank of Thailand as the target range within the next year by the policy adjusted the interest rate which is a key to managing the inflation rate back to the target range.
Published 05/10/2022
By Windy K.
