Skip to content
Economics
Central Banks

Thailand Raises Rate by Quarter Point, Moves Less Than Peers

  • Gradual policy normalization remains appropriate: central bank
  • BOT doesn’t see need to shift monetary policy on baht weakness
Customers at a market in Bangkok, Thailand. The country currently has the highest inflation in 14 years. 

Customers at a market in Bangkok, Thailand. The country currently has the highest inflation in 14 years. 

Photographer: Lillian Suwanrumpha/AFP/Getty Images

Updated on

Thailand’s central bank raised borrowing costs by a quarter-point, putting it further behind the policy tightening that peers in the region have followed to tame inflation and stem currency weakness. The baht extended its decline.

The Bank of Thailand’s monetary policy committee voted unanimously to raise the one-day repurchase rate by 25 basis points to 1% on Wednesday, as seen by 18 of 23 economists in a Bloomberg survey. The panel is ready to be more flexible in the pace and timing of future actions depending on growth and price conditions, it said in a statement, while reiterating it will pursue a gradual approach to shield a fragile economic recovery.