Thai interest rates raised to 2% by BoT amid core inflation worries

[snoop1130]

 

The Monetary Policy Committee of the Bank of Thailand (BoT) anticipates ongoing economic growth with some potential risks, as evidenced by their decision to increase the key Thai interest rates for the sixth consecutive meeting, according to the minutes released recently.

 

On May 31, the committee unanimously agreed to increase the one-day repurchase rate by a quarter point to 2%, attributing the decision to rising core inflation. The minutes highlighted that policy rate normalisation would continue gradually, with the aim of maintaining positive real interest rates.

 

Thai interest rates are still low as a result of reductions implemented during the Covid-19 pandemic. The Central Bank has committed to a gradual return to normal levels that align with long-term economic growth prospects.

 

The minutes also noted that the potential for increased minimum wages could lead to the pass-through of labour costs. The BoT is set to review its policy on August 2, with some economists predicting a pause in rate hikes due to decreasing inflation.

 

By Alex Morgan

Caption: Photo Courtesy of Bank of Thailand, Facebook

 

Full Story: https://thethaiger.com/news/business/bot-raises-interest-rate-to-2-amid-core-inflation-concerns

 

-- © Copyright Thaiger 2023-06-14

 

- Cigna offers a range of visa-compliant plans that meet the minimum requirement of medical treatment, including COVID-19, up to THB 3m. For more information on all expat health insurance plans click here.

 

The most versatile and flexible rental investment and holiday home solution in Thailand - click for more information.

[worgeordie]

16 minutes ago, snoop1130 said:

predicting a pause in rate hikes due to decreasing inflation.

 

Decreasing Inflation ? , not for anything I buy , the real rate is nothing near what the Government

says it is , if the price of Diesel goes up again , prices will rise for just about everything.....

 

regards Worgeordie

[mikebell]

Does this mean my 800,000 will increase?

[BenStark]

15 hours ago, worgeordie said:

Decreasing Inflation ? , not for anything I buy

I notice in Makro for the past 2 weeks that some products I frequently buy, and are from third party companies, have had significant price decreases. Some even 20%.

 

The very same articles, branded Aro or Savepak, are still at an all time high though.

[Enzian]

A little extreme perhaps but raises the point imo that while Pita may seem to be our best hope for an escape from the headlock of the establishment, there are probably things about him and his clan that will seem highly problematic if he ever arrives at his goal.

And while a 2% central bank rate is obviously low, at least anecdotally I don't see inflation taking off here the same as some other places.

Edited June 15, 2023 by Pink Mist
quoted post removed

[Mickeymaus]

I never visit bars or other entertainment venues and therefore have no idea about the prices. And I also don't know people going there (yes, life without this is possible even in Pattaya). But how does inflation change the price of their services? The drinks, the lady drinks, the bar fines, entertainment costs. Has that gotten more expensive?

[Pink Mist]

A flame post has been removed.

[jacko45k]

23 hours ago, mikebell said:

Does this mean my 800,000 will increase?

Let us hope the interest on it does.

[mikebell]

10 minutes ago, jacko45k said:

Let us hope the interest on it does.

Despite having it in a supposedly 'high' interest rate it's barely moved in three years.  They give me 4,017 & tax me 602.