Bank of Thailand to Deliver Final Rate Hike on May 31

The Thai central bank is expected to raise its key interest rate by 25 basis points (bps) on Wednesday to a level not seen since 2014, according to a Reuters poll.  

Inflation in Thailand has returned to the Bank of Thailand’s target range between 1-3%. The commerce ministry expects it to ease further in May due to a high base in 2022, while fuel prices are now lower.

The poll expected the Thai central bank to make its last rate hike this month and maintain rates at 2% for the rest of the year and also the next, marking an end to a tightening cycle.

Still, Governor Sethaput Suthiwartnarueput noted last month that inflation risks remained and needed monitoring.

Meanwhile, some economists believed the Bank of Thailand would take the rate as high as 2.25% and some expected the central bank to keep rates at 1.75%.