At its 24 August monetary policy meeting, the Central Bank of Thailand (BoT) hiked the one-day repurchase rate by 25 basis points to 3.50%, in a decision widely awaited by private sector analysts. The decision represented the ninth increase since July 2010, when the Bank started to push up the key monetary policy rate from a record low of 1.25%. In their statement, monetary authorities argued that despite the slowdown in economic activity in the advanced economies, in particular in the United States and core Europe, the economy continues to benefit from strong intra-regional trade and resilient domestic demand, which is supported by favourable conditions in the labour market. In addition, the Bank stated that despite the moderation in global energy and food prices, inflationary pressures persist, as domestic demand is expanding as a result of fiscal measures taken by the government of former Prime Minister Abhisit Vejjajiva. As a consequence, inflation expectations remain high. The next monetary policy meeting is scheduled for 19 October. Going forward, inflation pressures are likely to mount, as the recently-elected government has proposed to raise the minimum wage and boost civil servant salaries. In addition, the government plans to hike rice prices for the next harvest in November which, if implemented, is likely to propel food price inflation in the country and in the region.
Thailand Monetary Policy
Bank of Thailand lifts interest rates
August 24, 2011
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Thailand Economic News
October 17, 2016
On 13 October, Thailand’s beloved King Bhumibol Adulyadej died after a 70-year reign and his successor, Crown Prince Maha Vajiralongkorn, has declared his wish to wait until he ascends the throne.
October 4, 2016
In September, consumer prices inched up 0.04% from the previous month, which contrasted the 0.04% decrease observed in August and overshot market expectations of a 0.1% increase.
September 30, 2016
In August, the trade balance recorded a USD 2.1 billion surplus, which was above the USD 0.7 billion surplus observed in the same month of the previous year and was also higher than the USD 0.8 billion surplus registered in July.
September 30, 2016
In August, manufacturing production increased 3.1% over the same month last year, which was a sharp upswing from the 5.0% contraction seen in July and marked the highest reading in over three years.
September 14, 2016
At its 14 September monetary policy meeting, the Bank of Thailand (BoT) decided unanimously to keep the one-day repurchase rate at 1.50% as the markets had expected. In its press release, the Bank commented that the Thai economy had accelerated in the second quarter on the back of strong private consumption and resilient public expenditure.