Thailand central bank raises rate for a third time

Bloomberg

Thailand increased its key interest rate by a quarter point for a third straight meeting and raised its inflation estimate for 2023 while reiterating it’s ready to adjust the size and timing of its tightening.
The Bank of Thailand’s monetary policy committee voted unanimously to raise the one-day repurchase rate by 25 basis points to 1.25% on Wednesday, as seen by 20 of 21 economists in a Bloomberg survey, with one predicting no change.
The central bank revised its forecast for 2023 headline inflation to 3% from 2.6% estimate while it slightly lowered economic growth projection to 3.2% for 2022. The outlook for headline price gains to return to target was pushed to third quarter of next year from previously
anticipated second quarter.
Thailand is sticking to its gradual tightening approach even as some analysts previously thought the moves were too little to cool price gains at a 14-year high and a currency hitting a 16-year low. Since then, the baht has rebounded and headline consumer prices eased to a six-month low.

“Economic recovery will be on track, albeit with risks to inflation,” the BOT said in a statement. “Given the heightened uncertainties surrounding the global economy, the Committee is ready to adjust the size and timing of policy normalization should the growth and inflation outlook shift from the current assessment.”
Thailand is sticking to its gradual tightening approach even as some analysts previously thought the moves were too little to cool price gains at a 14-year high and a currency hitting a 16-year low. Since then, the baht has rebounded and headline consumer prices eased to a six-month low.
“We think the economy has recovered and headline inflation has passed the peak,” Assistant Governor Piti Disyatat told a briefing Wednesday. “A gradual policy normalisation remains an appropriate course for monetary policy given the growth and inflation outlook,” he said.