27 C
Hua Hin
Tuesday, December 6, 2022

The BOT advises against late rate hikes

The Bank of Thailand (BOT) has stated that delaying rate hikes for too long would be detrimental to the country as inflation continues to rise, prompting economists to predict an impending rate hike.

BOT Governor Sethaput Suthiwartnarueput told reporters and a business seminar that inflation is expected to rise above the central bank’s 1-3 percent target range this year, peaking at 7.5 percent in the third quarter.

However, Sethaput noted that any increases will be gradual, as concerns about a recovery in the vital tourism sector remain. He did not specify when or how much rates would be raised.

The Bank of Thailand (BOT) has stated that delaying rate hikes for too long would be detrimental to the country as inflation continues to rise, prompting economists to predict an impending rate hike.

BOT Governor Sethaput Suthiwartnarueput told reporters and a business seminar that inflation is expected to rise above the central bank’s 1-3 percent target range this year, peaking at 7.5 percent in the third quarter.

However, Sethaput noted that any increases will be gradual, as concerns about a recovery in the vital tourism sector remain. He did not specify when or how much rates would be raised.

Sethaput stated that the economy is not expected to face an economic crisis, but rather high inflation, and that external stability is good and capital flows are not a concern.

He also stated that the weak baht, which is trading at five-year lows against the dollar, has not accelerated inflation significantly, assuring that the BOT will not be complacent and will closely monitor the situation.

melina
Author: melina

Related Articles

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Stay Connected

1,508FansLike
2,663FollowersFollow
347SubscribersSubscribe
- Advertisement -

Latest Articles

X
X
X