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Thai Central Bank Raises Rate to Rein in High Inflation

By Kosaku Narioka

 

Thailand's central bank on Wednesday increased its policy rate in a bid to rein in high inflation.

The Bank of Thailand said its policy committee voted unanimously to raise its one-day repurchase rate by 25 basis points to 1.25%, effective immediately.

Five of six economists polled by The Wall Street Journal had expected that the central bank would increase the key rate by 25 basis points.

Thailand's consumer-price index in October rose 5.98% from a year earlier, above the central bank's inflation target range of 1%-3%. Meanwhile, third-quarter gross domestic product expanded 4.5% from a year earlier thanks to the easing of Covid-19 restrictions and a recovery in tourism from international travelers.

Central banks globally have been raising rates this year, following years of loose monetary policy, as they try to control a surge in inflation driven by a recovery from the Covid-19 pandemic as well as the Russia-Ukraine war.

In August, the Thai central bank raised its policy rate for the first time in nearly four years from a record low of 0.50%.

 

Write to Kosaku Narioka at kosaku.narioka@wsj.com

 

(END) Dow Jones Newswires

November 30, 2022 02:21 ET (07:21 GMT)

Copyright (c) 2022 Dow Jones & Company, Inc.

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