United Overseas Bank (UOB) is expecting the Bank of Thailand (BOT) to raise the policy interest rate this year, as the Thai economy begins showing strong signs of recovery.
Enrico Tanuwidjaja, the UOB’s economist for the ASEAN region, said the Thai economy is showing robust recovery indicators, owing to the revitalizing tourism scene.
UOB has maintained its growth projection for Thailand 3.1% this year and 3.5% for next year. The bank estimates that the average inflation rate throughout 2023 will be 2.7%, in line with BOT projections.
UOB noted that global inflation is being driven by the impact of El Niño weather events in several countries, the conflict in Ukraine, and fluctuations in energy prices, especially petroleum prices after an announced production cut by OPEC countries.
These factors will most likely impact monetary policies implemented by central banks around the world. The United States Federal Reserve is expected to raise its policy rate again this month to 5.5%, with this rate to be maintained until the third quarter of 2024. (NNT)
