Baidu Finance: Bank of Thailand raises interest rates by 25 basis points

The Bank of Thailand raised its benchmark interest rate by 25 basis points on Wednesday to curb inflation, the first rate hike in nearly four years.

 

The Bank of Thailand's Monetary Policy Committee voted 6-1 to raise the one-day repo rate to 0.75% from a record low of 0.50%, which has remained unchanged since May 2020.

 

One member voted to raise the policy rate by 50 basis points. The last time the Bank of Thailand raised interest rates was in December 2018.

 

Official data released on Friday showed that Thailand's consumer price index (CPI) rose 7.61 percent year-on-year in July, down from 7.66 percent in June. Core inflation surged to 2.99%, beating expectations of 2.63%.

 

The Bank of Thailand said inflation will remain high throughout 2022, largely unchanged from its previous forecast, before gradually falling to the target range in 2023.