Thai central bank to raise rates on August 10 as inflation surges: Reuters poll

BENGALURU : Thailand’s central bank will raise interest rates for the first time in around four years from a record low on Aug. 10 as the central bank shifts its focus from economic growth to rising inflation, a Reuters poll found.

High inflation, a global phenomenon from disrupted supply chains, has also affected Thailand and it has remained above the central bank’s target of 1-3 per cent since early 2022. It hit a 14-year high of 7.66 per cent in June from a year earlier and remained around that level in July.

But the Bank of Thailand (BOT) has so far kept its policy rates unchanged to foster economic growth although last month it signalled a gradual monetary policy tightening to combat inflation.

That shift was evident in June when calls for rate hikes grew louder and three of seven monetary policy members voted in favour of a rate hike.

“The BOT guidance was that with economic…