Analysts said the move was aimed at pre-empting inflation as the Thai economy expands due to higher-than-expected growth in tourism and private consumption.
Piti Disyatat, secretary of the MPC, said the committee voted unanimously to raise the key rate.
The MPC said the economy was steadily recovering from the Covid-19 crisis. Although external demand has slowed somewhat recently, it is expected to gradually improve in the near future.
The Commerce Ministry has forecast that the median inflation rate for the rest of this year will be about 1.5%. Although inflation is modest, potential risks cannot be ignored, the MPC said.
As the economy is returning to its potential growth level, monetary policy should keep inflation within the target range and help strengthen the long-term stability of the financial sector, the committee agreed. This is achieved by preventing the accumulation…
