Bank of Thailand to Raise Interest Rate by 25bps

The Bank of Thailand is expected to raise its benchmark one-day repo rate by another 25 basis points at its upcoming meeting this week to get inflation back within its target.

Based on 18 of 22 economists in the Reuters poll, the Thai central bank will hike its interest rate by a quarter percentage point to 1.75% this Wednesday.

Inflation in Thailand slowed down to a 13-month low of 3.79% in February, a significant drop from 5.02% in January, and the central bank could take this opportunity to tame it to the target range of 1-3%.

In addition, four economists expected the Thai central bank’s terminal rate at 2.25% or higher, while five believed the rate to maintain at 2.00%, six saw the central bank to maintain rates at 1.75% and four others saw a cut to 1.50%.