BOT expected to raise interest rate by 0.25%

This is expected to be the final increase, given the growing concerns about economic recovery and potential risks such as high household debt and increasing inflation. Some experts are urging caution and suggest waiting to see if the government’s policies can successfully stabilise the economy.

Pipat Luengnaruemitchai, chief economist at Kiatnakin Phatra Securities, stated that the Bank of Thailand is likely to raise rates by 0.25% in this meeting to counter future inflation expectations. He also pointed out that interest rates are currently higher compared to pre-COVID-19 levels, which could pose challenges for borrowers and the economy.

Furthermore, inflation has been steadily decreasing, and this could lead to a situation where the real interest rates turn positive again. Therefore, continuous rate hikes may not be necessary to support the future economic outlook.

With the…