The Bank of Thailand (BOT) said on Monday that despite global financial tightening, the country’s economy should continue to recover and the overall financial stability remains solid.
The central bank stated that it is prepared to alter the pace of rate hikes if the outlook shifts, but that a gradual rate hike is still aligned with Thailand’s recovery and inflation outlook.
The rebound in private consumption and the key tourist sector will continue to underpin South-east Asia’s second-largest economy, according to the central bank in a statement issued for an analysts’ meeting.
The recovery and inflation forecast have been in line with expectations, and long-term inflation expectations have remained stable, according to the report.
BOT predicts Thailand’s economic growth would accelerate to 3.2% in 2022 and 3.7% in 2023.
With the vital tourism sector only beginning to pick up this year, Thailand’s economic recovery has lagged that of other South-east Asian countries, and the tightening cycle has been less aggressive than in many regional peers.