Thailand: Central bank pledges gradual monetary policy adjustments

• Jul 22, 2022

The Bank of Thailand (BoT) will prevent inflation from rising sharply, but at the same time ensure that any monetary policy adjustments are gradual, BoT governor Sethaput Suthiwartnarueput told a news conference on Friday.

The central bank is expected to raise its key interest rate from a record low of 0.50% at its next meeting on Aug 10.

Meanwhile, Kasikornbank (KBank) predicted that the baht will weaken more than previously projected because of the United States Federal Reserve’s hawkish rate hikes.

KBank revised its baht projection to 35 against the US dollar at the end of this year from a previous forecast of 33.50 baht to the dollar. The adjustment is based on the Fed’s tightening monetary policy, said Kobsidthi Silpachai, the bank’s head of capital markets research.

The market predicts the Fed will increase its policy rate by 25 basis points at the upcoming meeting next week.

Source: https://www.bangkokpost.com/business/2351754/central-bank-pledges-gradual-monetary-policy-adjustments