The MPC raised the policy interest rate by 0.25%, as expected, from 0.50% to 0.75% per annum, while estimating that the Thai economy is likely to expand continuously.
Mr. Piti Disayat, Secretary of the Monetary Policy Committee (MPC), announced the results of the 4th MPC meeting on August 10, 2022. The Committee passed a resolution of 6 to 1 to raise the policy rate by 100. 0.25 percent per annum from 0.50% to 0.75% per annum with immediate effect, one vote agrees to raise the policy rate by 0.50% per annum
The Thai economy is likely to continue to recover and has strong momentum from the larger-than-expected increase in foreign tourists. Private consumption tends to continue to recover. from the labor market and improving household incomes. But the impact on the important momentum of the Thai economy is expected to be limited.
Headline inflation in 2022 is likely to stay at a high level close to the previous estimate. It is expected to stay at a high level for a while. before gradually reducing to the target in 2023
The Committee assessed that the Thai economy is likely to continue to expand. This makes a particularly accommodative monetary policy less necessary. and saw that the policy interest rate hike returned to a level suitable for long-term stable economic growth This should be done gradually. in accordance with the economic context and inflation going forward.
