Central Banks

Thailand Set for Another Rate Hike as Baht Falls

  • Central bank to also provide its latest economic estimates
  • Baht’s drop prompted calls last week for BOT measures

A customer hands money to a vendor at a wet market in Bangkok.

Photographer: Andre Malerba/Bloomberg
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Thailand is poised to raise its policy rate for a second straight meeting, with a handful of economists expecting a more aggressive tightening as the baht’s plunge to a 16-year low threatens to further stoke inflation.

Bank of Thailand will raise the benchmark one-day repurchase rate by 25 basis points to 1% on Wednesday, according to 18 of 23 economists surveyed by Bloomberg. The rest predict a half-point increase, the first such adjustment since 2005.