A gradual rate increase is still an approach consistent with Thailand’s recovery and inflation outlook, but the central bank is ready to adjust the pace if the outlook shifts.
Southeast Asia’s second-largest economy will continue to be supported by a recovery in private consumption and the vital tourism sector.
The recovery and inflation outlook have been in line with expectations and long-term inflation expectations remained anchored.
The tightening cycle has been less aggressive than many regional peers as Thailand’s economic recovery has lagged that of other Southeast Asian countries, with the crucial tourism sector only starting to pick up this year.