Inflation close to zero but policymakers expect a rebound and want to prevent troubleA bank employee gathers Thai baht notes at a Kasikornbank branch in Bangkok on Jan 26, 2023. (Photo: Reuters)The Bank of Thailand raised its key interest rate to a nine-year high on Wednesday, amid concerns about upside risks to prices. The central bank’s Monetary Policy Committee voted unanimously to raise the one-day repurchase rate by 25 basis points to 2.25%, as expected by 19 of 21 economists in a Bloomberg survey. The central bank in May forecast a steady pace of economic expansion at 3.6% this year and 3.8% next year, supported by tourism and private consumption. The political uncertainty has weighed on Thai stocks with foreign investors being net sellers of 120 billion baht worth of shares this year.

Source: Bangkok Post August 02, 2023 08:04 UTC