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Bank of Thailand likely to hike rates amid inflation concerns
Thailand Business News cropped Inflation concerns prompt predictions of further Bank of Thailand rate hikes this year, as the nation’s economy recovers. Siam Commercial Bank’s research unit, SCB Economic Intelligence Center (EIC), anticipates the central bank’s Monetary Policy Committee (MPC) will increase its policy benchmark rate by a quarter percentage point in both August and September, bringing it to 2.5% from the current 2%.
SCB EIC stated that although the inflation rate is within the central bank’s target range of 1-3%, there remains an upside risk to inflation. As the tourism sector recovers, inflationary pressure from the demand side is expected to rise, with business operators likely to pass on higher costs to consumers throughout the year.
In contrast, Krungthai Compass, a research house under Krungthai Bank, predicts the MPC will maintain its policy rate…
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