World

Thailand’s central bank expected to raise policy rate

The Bank of Thailand (BoT) is expected to raise its policy rate by 0.25 percentage points to 1.75% to contain inflation amid the economic recovery while trying to ease baht volatility, according to economists.
Thailand’s central bank expected to raise policy rate ảnh 1The Bank of Thailand (BoT) is expected to raise its policy rate by 0.25 percentage points to 1.75%. (Photo:bangkokpost.com)

Bangkok (VNA) – The Bank of Thailand (BoT) is expected to raise its policyrate by 0.25 percentage points to 1.75% to contain inflation amid the economicrecovery while trying to ease baht volatility, according to economists.

Research centres believed the central bank's move will attempt to controlinflation, facilitating a smoother economic recovery via monetary policynormalisation. However, some research houses expected the central bank mayweigh up managing foreign exchange rates with future rate hikes rather thaninflation rate containment.

Amonthep Chawla,chief economist at CIMB Thai Bank, forecast the rate hike, to be announced atthe Monetary Policy Committee's meeting on March 29, will be the last one forthis rate cycle, making the terminal rate 1.75%.

Moreover,efforts to tackle the Thai baht's volatility against the US dollar will be thekey objective of the increase in this round, rather than containing inflationas the inflation rate has been declining, he said.

The central bank has increased the policy rate four consecutive times, startingfrom August 2022, with an objective to curb higher inflation rates. Thailand'sheadline inflation, gauged by the consumer price index (CPI), was 3.79%year-on-year in February, decelerating for a second straight month and thelowest rate in 13 months. This followed 5.02% headline inflation year-on-yearin January and 5.89% in December 2022.

The central bank assessed medium-term inflation to remain anchored within thetarget range at 1-3%.

Amonthep said the inflation rate is expected to return to the central bank'starget framework around late April, or later in the second quarter.

Meanwhile, the Kasikorn Research Centre (KResearch), Siam Commercial BankEconomic Intelligence Centre and TTB analytics expected the central bank toraise its rate two times, in March and June, making the rate 2% by mid-year.

Thanyalak Vacharachaisurapol, deputy manager of KResearch, said controlling theinflation rate would be the key objective of the central bank's policy rateincrease.

Ensuring pricing stability through both the inflation rate and foreign exchangerate is the key role of the central bank, Thanyalak noted./.

VNA
#Thailand #central bank #policy rate #Vietnam #Vietnamplus #Vietnam News Agency Thailand
Follow VietnamPlus

See more

Illustrative image (Photo: freemalaysiatoday.com)

Malaysia cracks down on e-cigarette

A total of 33 people were arrested while over 1.72 million MYR (400,000 USD) worth of electronic cigarette devices and merchandise were seized in a joint operation carried out simultaneously across seven districts in Malaysia’s Sabah state.

Malaysia seizes over three tonnes of synthetic drugs. (Photo: Malay Mail)

Malaysia seizes over three tonnes of synthetic drugs

Preliminary investigations indicate the syndicate had been operating for several years, using sea routes across the East Sea as its main transport channel. The drugs were allegedly stored in containers at logistics facilities before being distributed to international markets.

The Tourism Authority of Thailand (TAT) promotes Thai culture and travel experiences at The Gypsy Travel Festival (TGTF) 2026 in Mumbai. (Photo: thailand.prd.go.th)

TAT showcases Thai culture at Mumbai travel festival

The effort was led by the TAT Mumbai Office and the ASEAN, South Asia, and South Pacific Market Division, under the direction of TAT Governor Thapanee Kiatphaibool, with support from Consul-General Donnawit Poolsawat and senior TAT executives. The festival was held last week at Jio World Drive and attracted a large audience from a high-spending travel segment.

Thailand: Bhumjaithai Party forms alliance with Pheu Thai

Thailand: Bhumjaithai Party forms alliance with Pheu Thai

Caretaker Prime Minister Anutin Charnvirakul emphasised that both parties share confidence in the capacity and experience of their personnel to steer Thailand towards long-term stability and sustainable development, adding that they had agreed to put aside past misunderstandings and differences in the national interest.

Malaysia seizes a record of nearly 20 million USD worth of methamphetamine (Photo: Bernama)

Malaysia busts largest-ever maritime drug trafficking ring

According to the MMEA, the operation took place on February 11 in waters off Pahang state, about 107 nautical miles northeast of Kuantan. Officers inspected the Thailand-flagged oil tanker Kamal Bangkok and discovered 76 sacks of methamphetamine that had been carefully concealed.

Laos moves to promotes sustainable coffee, tea farming

Laos moves to promotes sustainable coffee, tea farming

The coffee sector plays a vital role in Laos' socio-economic development. More than 80 domestic and foreign companies are currently investing in coffee production, processing and export, generating over 100 million USD in annual export value.

Department of National Defence (DND) Secretary Gilberto Teodoro Jr. (left) and Japanese Ambassador to the Philippines, Endo Kazuya (right), during the “ceremonial turnover” of five coastal surveillance radar systems to the country’s defence establishment on February 11. (Photo courtesy of the DND)

Japan hands over coastal surveillance radar to the Philippines

The equipment was provided under Japan’s Official Security Assistance (OSA) framework. The deal was finalised during the November 2023 visit to Manila by then Japanese Prime Minister Kishida Fumio, when the two sides exchanged notes for 600 million JPY (nearly 4 million USD) in OSA funding for the provision of coastal radar systems to the Philippine Navy.

Two Mahakam dolphins (Orcaella brevirostris) are seen swimming. (Photo: ANTARA)

Indonesia takes emergency solutions to save Mahakam dolphins

Based on the latest data as of early February, only 66 of these endemic Mahakam River mammals are estimated to remain in the wild. This situation has prompted Indonesian authorities to take concrete and decisive actions to prevent the species from slipping into extinction.