Thailand Base Interest Rate at 0.75%... Raised for the First Time in 4 Years

[Asia Economy Reporter Bu Aeri] The Thai government has raised the benchmark interest rate by 0.25 percentage points. This is a measure to curb inflation and is the first increase in 3 years and 8 months since December 2018.

The Bank of Thailand (BOT) announced on the 10th that it held a Monetary Policy Committee (MPC) meeting and raised the benchmark interest rate from the previous 0.5% to 0.75%.

Thailand had maintained the benchmark interest rate at a record low of 0.5% since May 2020 to support economic recovery.

The central bank forecasted that the Thai economy would return to pre-COVID-19 levels by the end of this year. This is due to a larger-than-expected influx of foreign tourists following the easing of entry restrictions, which in turn is revitalizing private consumption.

However, the central bank also predicted that the high inflation situation would continue for the time being. The consumer price index is expected to remain at a high level until the end of this year.