Thailand’s Central Bank Maintains Policy Rate at Historic Low amid Inflation Pressure

Thailand’s Central Bank reportedly voted unanimously on Wednesday to maintain the policy rate at a historic low of 0.50 percent, citing that the country’s economy continues to recover and the spread of the Omicron variant poses a limited risk to the public health system.

This action is consistent with market expectations, with Krungsri Research Center saying that as consumer purchasing power remains weak with high household debt and the recovery remains fragile, accommodative monetary policy is essential, despite inflationary pressures having increased due to supply-side issues linked to higher energy costs.