At its 1 December monetary policy meeting, the Bank of Thailand (BoT) surprised the market by raising the one-day repurchase rate by 25 basis points from 1.75% to 2.00% and maintaining its dovish tone unaltered for the remainder of the year. The decision follows on two consecutive months without a change in the reference rate. BoT Assistant Governor Paiboon Kittisrikangwan stated that the recovery in the global economy continues as expected, but cited that additional downside risks persist, such as the increasing volatility in the financial markets, as a result of sovereign debt woes in some European countries. Moreover, monetary authorities claimed that the country's economic fundamentals remain robust, with economic growth buttressed by strong domestic demand. Consequently, as a result of increasing input costs due to growing domestic demand, inflationary pressures, while stable at the moment, are expected to rise in the coming months. The next monetary policy meeting is scheduled for 12 January.
Thailand Monetary Policy
Central Bank surprises with rate hike
December 1, 2010
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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.