Bank of Thailand raises key rate from 1.50 to 1.75%

In an effort to lower inflation to its target range, Thailand’s central bank increased its key policy rate by 25 basis points (0.25%), to 1.75%, the highest level since August 2019.

The Bank of Thailand raised rates for the sixth time in a row on Wednesday as the Committee voted unanimously to raise the policy rate by 0.25 percentage point from 1.50 to 1.75 percent.

Tourism and private consumption remain the key drivers of growth

The tourism industry and private consumption should be the key drivers of further economic growth in Thailand, according to the Thai central bank press release.

According to the Tourism Board of Thailand, more than 11 million foreign tourists visited Thailand last year, much above the prior goal of 10 million. 25 million to 30 million foreigners are projected to arrive this year, contributing an estimated 2.38 trillion baht ($69.46 billion) to the economy,…