The Bank of Thailand's Monetary Policy Committee (MPC) has raised its policy rate by 0.25 percentage points, in a bid to maintain the momentum of the Thai economic recovery.
The MPC yesterday voted unanimously to raise the policy rate by a quarter percentage point, from 1.75% to 2%, with immediate effect. The rate hike aligns with the Thai economic expansion, which has been driven mainly by tourism and private consumption, said Piti Disyatat, secretary of the MPC.
The central bank has increased the policy rate six times since August 2022, rising from 0.5%. The MPC expects Thai GDP to grow by 3.6% and 3.8% in 2023 and 2024, respectively.
