Central bank raises interest rate

The central bank's MPC voted to raise the policy rate by a 0.25 percentage point from 0.50% to 0.75%, effective immediately. The policy rate had been kept at a record low of 0.50% since May 2020. REUTERS

The Bank of Thailand raised its key interest rate for the first time in nearly four years yesterday in an effort to wrestle control over surging inflation as the economic recovery gains momentum.

The central bank could also revise up the economic growth forecast this year, given the clearer signs of economic recovery.