Economist at UOB Group Enrico Tanuwidjaja assesses the latest interest rate decision by the Bank of Thailand (BoT).

Key Takeaways

“BOT voted 6 to 1 to raise its benchmark rate by 25bps to 0.75%, while 1 member preferred a larger 50bps hike.”

“BOT is of the view that given expectation of sustained growth recovery and higher inflation expectations ahead, the policy rate should start being normalized.”

“We keep our view for another 25bps back-to-back rate hike to 1.00% in Sep MPC meeting and to stay there for the rest of 2022, before possibly resuming hike in 2023.”