Bank of Thailand (BOT) plans to wait at least a year before releasing interest rates.
Although inflation exceeded 1-3% in January 2022, it will return to normal within the next few months. Despite the fragile economic recovery of the Kingdom associated with Omicron, the country is moving slowly towards pre-pandemic indicators.
Inflation trends allow the Central Bank of Thailand to keep interest rates at record low levels.
On February 1-4, 2022, Reuters surveyed 23 economists that BOT would maintain a low-interest rate of 0.50% on one-day REPO transactions (REPO is a form of lending, designed as the purchase and sale of securities).
23 specialists are confident that BOT will continue to keep the percentage at the current level. Economists noted that the rate increase will not occur until the second quarter of 2023. This is approximately 0.75%.
Despite the dependence of the Thai economy on the dollar, the country's monetary policy differs from the policy of the US Federal Reserve System.
This may cause volatility in the inflow of foreign capital into the country, but BOT is confident in its reserves and ready to use them to control potential imbalances.
Thai Baht is a currency with one of the best development indicators among developing countries. According to another analysis by Reuters, the kingdom’s national currency grew by 3% last year.