No doubt remains as to whether the Bank of Thailand will raise interest rates. The bank's governor has made it clear they must be raised to deter rising inflation, and that this must be done in a timely manner. Analysts have taken his speech as indicating a 25bp hike will be introduced at the upcoming Monetary Policy Committee (MPC) meeting scheduled for Aug 10.
The rate will likely to be raised further at the next two MPC meetings on Sept 28 and Nov 30 by another 25bp on each occasion. This will bring the total increase this year to 75bp, causing Thailand's Policy Interest Rate (1-Day Repo Rate) to stand at 1.25%.
