Thai Central Bank Votes Unanimously to Increase Rate by 0.25% to 2.00%

The Monetary Policy Committee (MPC) on Wednesday unanimously voted to raise Thailand’s policy rate by a quarter point, bringing the terminal rate to 2.00% from 1.75%. This increase is effective immediately. 

This announcement was consistent with market forecasts.

Economists believe May’s rate hike will be the final time in this cycle. Despite inflation has returned to the target range, a rise in interest rates will provide the central bank with greater flexibility to manage a potential economic downturn in the near future, said economists at Krungsri Capital Securities.

The Bank of Thailand (BOT) has maintained its gross domestic product (GDP) growth projection for Thailand at 3.6% in 2023 and 3.8% for next year, while lowering its inflation projection from 2.9% to 2.5% by year’s end.