Thailand’s central bank raised its benchmark interest rate for a fifth straight time, a decision widely expected as a rebound in economic activity adds to inflationary pressures.
(Bloomberg) — Thailand’s central bank raised its benchmark interest rate for a fifth straight time, a decision widely expected as a rebound in economic activity adds to inflationary pressures.
The Bank of Thailand’s monetary policy committee voted unanimously to raise the one-day repurchase rate by 25 basis points to 1.75% on Wednesday, as seen by 19 of 22 economists in a Bloomberg survey, with the remaining three predicting no change.
A rebound in tourism in Southeast Asia’s second-largest economy is boosting activity and demand in the economy. Campaign spending for a general election due in May is also seen fanning price pressures, at a time when headline inflation is still above the central bank’s 1%-3% target range.
Wednesday’s hike marks the continuing divergence of policy path of central banks in Southeast Asia, with Thailand and the Philippines still staying their tightening course, while Indonesia and Malaysia have opted for a pause. Vietnam on the other hand has already pivoted to a rate reduction.
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