Thai c.bank hikes key interest rate by 25 bps

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BANGKOK — The following is a statement from the Bank of Thailand after it unanimously raised its key interest rate by 25 basis points to 1.50% on Wednesday, as expected by economists in a Reuters poll.

Piti Disyatat, Secretary of the Monetary Policy Committee (MPC), announced the outcome of the meeting on Jan. 25, as follows:

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The Thai economy will continue to gain traction with continued recovery in tourism and private consumption thanks to the return of Chinese tourists. Meanwhile, merchandise exports will slow down this year but are expected to improve in 2024 in line with the global economic recovery.

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Headline inflation is expected to decline, whereas core inflation remains at a high level with increased risks from demand-side inflationary pressures due to the economic recovery. The Committee deems that a continuing gradual policy normalization is an appropriate course for monetary policy consistent with the growth and inflation outlook, and thus votes to raise the policy rate by 0.25 percentage point at this meeting.

The Thai economy is projected to continue growing. The…