Bank weighs inflation and forex swings
The Bank of Thailand is expected to raise its policy rate by 0.25 percentage points on Wednesday to contain inflation amid the economic recovery while trying to ease baht volatility, say economists.
Local research houses predict the central bank’s Monetary Policy Committee will increase its policy benchmark rate by a quarter-point at its meeting on Wednesday, up from 1.5% now.
The research centres believe the central bank move will attempt to control inflation, facilitating a smoother economic recovery via monetary policy normalisation.
However, some research houses expect the central bank may weigh up managing foreign exchange rates with future rate hikes rather than inflation rate containment.
Amonthep…
