Goldman, Nomura see Thailand embarking on rate-hike cycle

A woman browses vegetables at a market in Nonthaburi province. - Analysts expect the central bank to increase rates from August to quell persistently high inflation. (Photo: Kitja Apichonrojarek)

The Bank of Thailand (BoT) is set to raise rates from August to quell persistently high inflation, according to analysts, ending a three-year long easy monetary policy stance to shield the Covid-19 pandemic-hit economy.

The BoT may hike its key rate by 25 basis points each at back-to-back meetings scheduled in August and September, according to Nomura Holdings Inc. Goldman Sachs Group Inc sees a longer hiking cycle, as it expects 200 basis points of increases split in quarter-point moves at every meeting till the third quarter of next year.