BENGALURU- The Bank of Thailand (BOT) will keep its key interest rate unchanged at 2.50 percent through at least 2024, following a surprise hike of 25 basis points on Sept. 27, marking an end to a year-long cycle of tightening, a Reuters poll of economists showed.
Despite inflation running below the central bank’s target range of 1 percent to 3 percent , Governor Sethaput Suthiwartnarueput said Wednesday’s unexpected hike aimed to anchor expectations about price rises.
All 20 economists in a Reuters poll from Sept. 27 to Sept. 29 expected the BOT to keep its benchmark one-day repurchase rate at 2.50 percent at the Nov. 29 meeting.
Median forecasts showed rates staying at that level until end-2024 at least.
“The Monetary Policy Committee (MPC) stated clearly in the statement that the current policy rate is appropriate to support long-term sustainable growth,” said Lattakit Lapudomkarn, an economist at Kiatnakin Phatra Securities.
“Unless the economic outlook changes significantly, we believe the MPC is already done with the current monetary policy tightening cycle.”
While the BOT raised its 2024 inflation forecast to 2.6 percent from 2.4 percent , it is within the central bank’s target range.
However, some economists said a weak Thai baht which has dropped more than 5 percent this year, was likely to turn imports expensive and inflation elevated. -Reuters
