MPC Votes 4:3 to Maintain Policy Rate at 0.50% as Investors Look Forward to August Meeting

On June 8, 2022, the Monetary Policy Committee (MPC) voted 4 to 3 to maintain the policy rate at 0.50 percent despite surging inflation. Three members voted to raise the policy rate by 0.25 percentage point.

The resolution of the central bank was in line with the market expectations to maintain the policy rate at 0.50 percent.

Thailand’s inflation rose to a 13-year high in May as costs of living continued to soar amid rising energy prices.

The market is now on edge for a rate hike in the next meeting on August 10, 2022, as the vote in this meeting was very close.

Bank of Thailand raises 2022 inflation estimate to 6.2% from 4.9%, while seeing 2023 average core inflation at 2%.

Thailand’s SET Index closed the morning session at 1,634.76 points, increased 2.84 points or 0.17% with a trading value of 30 billion baht.