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MPC expected to hike policy rate further
Economists project at least one uptick
Economists forecast the Bank of Thailand’s terminal policy rate will be in the range of 1.75% to 2.5% for this cycle of rate hikes.
They believe despite a continued economic recovery, inflationary pressure will remain.
The terminal rate is defined as the peak level where the benchmark rate will come to rest.
Krungthai Compass, the research centre of Krungthai Bank, assesses the central bank’s Monetary Policy Committee (MPC) as likely to increase its policy benchmark rate at its next meeting.
The central bank’s policy rate normalisation is in line with the country’s economic recovery, attributed to the rebound of the tourism sector, said the centre.
However, the inflation rate is expected to remain at a high level and stay above the central bank’s target range of 1-3%, especially in the first…
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