BANGKOK : Thailand’s central bank expects further gradual policy tightening as the benchmark rate is not at neutral levels yet and core inflation remains elevated, officials said on Wednesday.
The Bank of Thailand (BOT) has increased rates six times since August as policymakers stepped up efforts to tame high inflation. The BOT has pledged to gradually return the one-day repurchase rate to normal levels consistent with long-term economic growth prospects.
Southeast Asia’s second-largest economy has not yet reached its potential growth despite returning to its pre-pandemic level, assistant governor Piti Disyatat said at a monetary policy forum.
“We will eventually get back to our potential growth of a 3 per cent to 4 per cent range. But now we’re still below that level, so we haven’t fully recovered,” he said.
The BOT forecast economic growth of 3.6 per cent this year and 3.8 per…
