11.08.2022, 22:21

Thailand's central bank hikes rate for first time in four years

 
Thailand's central bank hikes rate for first time in four years

Illustrative image (Photo: ledgerinsights.com)   

NDO/VNA – The Bank of Thailand (BOT) on August 10 raised its key policy rate by 25 basis points (0.25%) to 0.75%, aiming to keep the country's increasing inflationary pressures in check.


The BOT forecast that Thailand's economic growth this year will be 3.3%, up 0.1% from its previous projection. For 2023, it predicted growth of 4.2%, down 0.2%.

The central bank also maintained its forecast that the annual inflation stays at 6.2%.

Raising the interest rate signaled that the BOT was shifting its focus by tightening monetary policy in order to prevent spiraling inflation that could weigh on economic growth.

The BOT also noted that the Thai economy is recovering after the COVID pandemic was controlled.