At its 13 July monetary policy meeting, the Central Bank of Thailand (BoT) raised the repurchase rate by 25 basis points to 3.25%, in a decision widely expected by market analysts. With this move, the Bank has raised the policy rate by 200 basis points since monetary authorities began withdrawing the policy stimulus in July 2010. In its statement, the BoT argued that the economy continued to expand in the second quarter amid a healthy external sector and strong growth in domestic demand. The Bank underscored that the supply chain disruption, in particular in the automobile industry ?was resolved sooner than expected?, which bodes well for manufacturing production going forward. In addition, consumption and investment will continue to be supported by favourable credit and employment conditions. The Bank sees inflationary pressures to persist as a result of elevated energy and food prices. Moreover, the Bank considers that the government's extension of cost-of-living alleviation measures is unlikely to offset price pressures caused by minimum wage hike. As a result, monetary officials argued that ?in light of the continued risks to inflation amid robust domestic demand, the Committee deemed to continue increasing the policy rate.? The next monetary policy meeting is scheduled for 24 August.
Thailand Monetary Policy
Central Bank raises interest rates in July and signals further hikes
July 13, 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.