Bangkok Post
Thailand likely to avoid interest rate hike
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The Bank of Thailand is expected to keep interest rates steady as the nation lacks significant inflationary pressure, even as some regional central banks hiked rates to cope with rising prices.
Key facts
- Kobsak Pootrakool, senior executive vice-president and chief economist at Bangkok Bank, said the central bank would likely maintain its policy rate at 1% because Thailand has not faced the same inflationary pressures as several other
- Headline inflation is projected to average 2.9% in 2026 before easing to 1.5% in 2027.
- Bank Indonesia raised its benchmark rate by 50 basis points to 5.25% earlier this month, seeking to shore up the rupiah and contain inflation risks linked to higher oil prices and global economic uncertainty.
- Meanwhile, the Philippine central bank raised its policy rate by 25 basis points to 4.5% in April, while signalling the possibility of another off-cycle rate hike due to rising inflation and peso weakness.
- Headline inflation was 2.89% in April, the first increase in a year, as domestic fuel prices surged amid the prolonged blockade of the Strait of Hormuz, according to the Commerce Ministry.
- The Bank of Thailand is expected to keep interest rates steady as the nation lacks significant inflationary pressure, even as some regional central banks hiked rates to cope with rising prices.
Summary
Kobsak Pootrakool, senior executive vice-president and chief economist at Bangkok Bank, said the central bank would likely maintain its policy rate at 1% because Thailand has not faced the same inflationary pressures as several other countries in the region.
Bank Indonesia raised its benchmark rate by 50 basis points to 5.25% earlier this month, seeking to shore up the rupiah and contain inflation risks linked to higher oil prices and global economic uncertainty.