Thailand’s Central Bank Stands Firm on Interest Rate, Cites Uncertainty
The Bank of Thailand has maintained its key interest rate at 2.25% following its review last month, citing heightened economic uncertainty. Despite the uncertainty, the central bank believes its policy decision was robust and does not rule out future adjustments.
In its forecast, the bank maintains its projection of 2.7% economic growth in 2024 and 2.9% in 2025. The Thai economy grew by more than 3% in the last quarter of last year, driven by exports, tourism, and domestic demand.
The central bank has also highlighted the potential impact of protectionism under the incoming US administration, suggesting that it could lead to more Chinese goods being diverted to Thailand. The next rate review is scheduled for February 26.
