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Thai Central Bank for Timely Policy Tweaks as Inflation Soars

  • Rate hikes unlikely to derail recovery as real rates negative
  • BOT rules out emergency rate meeting to tackle inflation

Thailand’s central bank signaled an imminent rate increase, saying timely monetary policy adjustment in line with changing economic and price trends will help steer broader inflation expectations.

Gradual rate hikes will not derail an economic recovery given the real negative interest rates stemming from “ultra low” policy rate and high inflation, Bank of Thailand officials said on Monday. They ruled out an off-cycle rate hike, saying the three remaining meetings of the rate-setting panel for this year were appropriate.