A beach town in Thailand

Thailand Monetary Policy November 2022

Thailand: Central Bank hikes rates further in November; hints at further tightening ahead

At its 30 November meeting, the Monetary Policy Committee (MPC) of the Bank of Thailand (BoT) hiked the policy rate to 1.25% from 1.00%. The move marked the third consecutive increase and was unanimous.

The Bank decided to tighten its stance further due to elevated inflation and a continued economic recovery. Growing tourist numbers and stronger household spending amid rising wages and employment are factors in the latter. The BoT expects inflation to come in at an average of 6.3% in 2022, well above the 1.0–3.0% target band. Next year, the Bank expects inflation to average 3.0%, owing to easing supply-side pressures and falling oil prices. It sees the economy expanding 3.2% this year, 3.7% in 2023 and 3.9% in 2024.

In its communiqué, the Bank stated that “the policy rate should be normalized to the level that is consistent with sustainable growth in the long term in a gradual and measured manner”. This implies further hikes, in line with our panelists expectations. However, it added that due to heightened uncertainty surrounding the global economic backdrop, it stood ready to “adjust the size and timing of policy normalization.”

Commenting on the decision, Enrico Tanuwidjaja, economist at UOB, stated:

“We revised our view for another two 25 bps back-to-back rate hikes, to 1.75%, in January and March 2023 monetary policy meetings and remained at that level for the rest of next year.”

The next monetary policy meeting is scheduled for 25 January.

Free sample report

Access essential information in the shortest time possible. FocusEconomics provide hundreds of consensus forecast reports from the most reputable economic research authorities in the world.
Close Left Media Arrows Left Media Circles Right Media Arrows Right Media Circles Arrow Quote Wave Address Email Telephone Man in front of screen with line chart Document with bar chart and magnifying glass Application window with bar chart Target with arrow Line Chart Stopwatch Globe with arrows Document with bar chart in front of screen Bar chart with magnifying glass and dollar sign Lightbulb Document with bookmark Laptop with download icon Calendar Icon Nav Menu Arrow Arrow Right Long Icon Arrow Right Icon Chevron Right Icon Chevron Left Icon Briefcase Icon Linkedin In Icon Full Linkedin Icon Filter Facebook Linkedin Twitter Pinterest