The Bank of Thailand’s Monetary Policy Committee (MPC) voted 6 to 1 to raise its policy rate by 0.25% and it is the first increase in four years.
Piti Disyatat, secretary to the MPC said the MPC resolved to raise the policy rate to 0.75% per year.
He said that the Thai economy saw a clearer recovery trend and should return to its pre-COVID-19 level by the end of this year and expand further afterwards. Inflation would continue to rise for a certain period.
Given the situation, the MPC viewed that it was less necessary for an unusually easing monetary policy implemented earlier to cope with the past COVID-19 crisis.
The increase in the policy rate should happen gradually to suit economic contexts and inflation and ensure long-term economic stability, Mr Piti said.
According to him, consumption in the private sector is improving as the incomes of workers and households are increasing. The risk of global economic recession will have limited impacts on the Thai economic recovery. However, officials concerned will monitor the impacts of rising costs including the cost of living on the Thai economic recovery. (TNA)
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