Piti Disyatat, the Director of Economic Research in the Monetary Policy Group at the Bank of Thailand, said that there will be no unscheduled meeting regarding rate hikes and will maintain its inflation target at 1-3%.
In the Analyst Meeting, the director stated that the pace of interest rate hike is varied depending on each country’s policy to tame rising inflation rate. Thailand’s economic recovery would be slower due to its reliance on generating revenue from tourism.
As for the concern on wider gap between the June and August meeting amid fluctuation in the market, the director noted that the 6-8 weeks gap is to give the Monetary Policy Committee (MPC) time to acquire sufficient data for the meeting.
Mr. Disyatat added that there should not be any surprise meeting during the gap between the June and August meeting. However, it could not be specifically indicated how much each rate hike would be, while seeing that the three remaining meetings this year is reasonable, considering the current flow of the situation.
After the June meeting the vote to keep interest rates in place came out 4:3 as three dissents voted for a hike by 25 basis points, the market is inclining toward a quarter point rate hike in August.