Thailand: BoT could pause its hiking cycle in 2023 – UOB

Economist at UOB Group Enrico Tanuwidjaja reviews the latest interest rate decision by the Bank of Thailand.

Key Takeaways

“BOT voted unanimously to raise the policy rate by 25bps to 1.25%. This is its third hike for 2022. Back in Aug when BOT started its hiking cycle, 1 out of a total 7 members preferred a larger 50bps hike.”

“BOT deemed that a gradual policy normalization remains an appropriate course for monetary policy given the growth and inflation outlook in today’s decision statement.”

“We revised our view for another two 25bps back-to-back rate hikes to 1.75% in 2023 Jan and Mar MPC meeting and remained at that level for the rest of next year.”