Thai Interest rates have been raised by 0.25% with a unanimous decision of The Bank of Thailand’s Monetary Policy Committee. This 0.25% raised interest rate was validated immediately straight after the meeting summarized on 30 November 2022. This adjustment caused continued increasing interest rates from 1.00% to 1.25% per year which aimed to decline inflation and the steady increase in growth projection rate.
The economic growth rate expectation is projected to reach 3.2% this year, 3.7% next year, and 3.9% in 2024. From the conclusion of the meeting, the committee agreed that the tourism sector is recovering, as obvious by the number of tourist arrivals as well as increasing consumer consumption owing to increased employment and income, even though exports have declined.
Moreover, The Thai Baht seems to be more depreciated against the USD referring to the FED had been hiking the interest rates, and there tend to be more strongly increased than the market expectation. However, the committee will keep an eye on the global economic and monetary situation in order to make any further decisions on interest rate adjustments in the future due to the uncertainty over the factors, accordingly.
Published 07/12/2022
By Ashley Jones
