Bank of Thailand continues to hike interest rates

The Bank of Thailand increased its policy rate in its 4th meeting to combat inflation. The Bank of Thailand continued to hike interest rates to support the economy, which has accelerated with the recovery in tourism, and to curb inflation. The bank raised its policy rate by 25 basis points to 1.5 percent. The interest rate decision was taken unanimously. Economists who participated in a Bloomberg survey also predicted a 25 basis point increase. Although headline inflation in the country fell from its peak and fell to 5.89 percent annually in December, core inflation remains at its highest level since 2008. The bank raised interest rates, which were at a record low of 0.5 percent, for the first time in nearly 4 years in August. Southeast Asia’s second-largest economy welcomed 11.2 million tourists in 2022, the highest number since the pandemic. With China’s reopening, this figure is expected to exceed 25 million.