The Bank of Thailand has raised its key interest rate to a nine-year high of 2.25% due to concerns about rising prices.
Despite inflation easing and falling below the central bank’s target, policymakers aim to ensure it remains low. The central bank expects the economy to continue growing, driven by tourism and private consumption, but warns of risks from weak exports and political uncertainty.
They anticipate a rebound in inflation in the second half of the year and believe this rate hike will be the last for now. The extended wait for a new government is causing concern among industry groups and could delay investments and trade agreements.
Currently, inflation is projected to stabilize within the target range. However, it is important to note that there are always potential risks and uncertainties associated with inflation.Read the rest of Bank of Thailand raises key interest rate to highest level in nine years on Thailand Business News