The Bank of Thailand (BOT) expects the Thai economy to grow faster than projected in 2022, but 2023 outlook remains uncertain.
According to the Monetary Policy Committee minutes released on June 22, 2022, the policymakers stated that a gradual normalization from rate hikes would allow the economy to adjust smoothly and limit negative side effects while delaying the hike could entail greater costs on the economy.
The central bank addressed that the Thai baht weakness was in line with regional currencies. Earlier today, Thai baht dropped as much as 0.5% to its lowest since January 11, 20217. The bid was as high as THB35.48 per dollar.
On June 8, 2022, the Thai policymakers voted four to three to keep the benchmark policy rate at a record low of 0.50%. The three dissenters voted for a 25 basis-point rise, which prompted investors and economists to believe that the hike is right around the corner amid rising inflation rate.
The annual inflation rate in Thailand rose to 7.1% in May 2022 from 4.65% in the previous month.