Thailand’s central bank raises interest rates again, maintains growth outlook for 2022 According to Reuters

BANGKOK (Reuters) – Thailand’s central bank raised its key interest rate modestly for the second straight meeting on Wednesday in an attempt to rein in 14-year high inflation and ensure a continued economic recovery, while maintaining the growth forecast for 2022 at 3.3%.

The recovery of Southeast Asia’s second-largest economy has lagged behind others as its key tourism sector has just begun to recover while investment remains sluggish, allowing the central bank to slow down. interest rate increase, despite the larger increase of many banks in the same industry.

The Monetary Policy Committee of the Bank of Thailand (BOT), voted unanimously to increase the one-day redemption rate to 1.00%.

Of the 25 economists surveyed by Reuters, 22 are predicting a quarter point gain and three predict a half point gain.

“Thailand’s economic recovery continues to gain traction, mainly driven by tourism and private consumption,” the BOT, one of Asia’s less aggressive central banks, said in a note. statement after the meeting.

“The overall growth and inflation outlook is in line with the previous assessment.”

The central bank maintained its 2022 economic growth outlook at 3.3% in June. It cut its 2023 growth forecast to 3.8% from 4.2% for 2023.

The BOT raised its 2022 inflation forecast to 6.3% from the 6.2% previously seen and the 2023 estimate to 2.6% from 2.5%.

Earlier this month, Governor Sethaput Suthiwartnarueput said the BOT’s goal was to ensure a smooth recovery for the economy, which he said was expected to return to pre-pandemic levels by the end of this year or early next year.