Central Banks
Interest-Rate Path in Focus as Bank of Thailand Heads for Quarter-Point Hike
- Majority of economists surveyed expect 25 basis point hike
- Inflation remains concern for rate-setters as growth quickens
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Thailand’s central bank will probably raise borrowing costs by another quarter-point on Wednesday, with the decision itself likely to be overshadowed by the rate-setting panel’s commentary on future rate path.
Twenty-two of 24 economists surveyed by Bloomberg expect the Bank of Thailand’s Monetary Policy Committee to lift the benchmark one-day repurchase rate by 25 basis points to 2% — the highest level in eight years. The remaining two see policymakers holding fire after 125 basis-point of increases since August last year.