Bangkok – The Bank of Thailand (BOT) has hinted at the possibility of higher interest rates due to the current economic environment.
BOT Governor Veerathai Santiprabhob said that, according to the National Economic and Social Development Board, the Thai economy in the second quarter of 2018 expanded by 4.6%, bringing overall growth for the first half of the year to 4.8%. The figures align with forecasts issued by the central bank.
Veerathai revealed that the upcoming meeting of the BOT’s Monetary Policy Committee in September will consider revising the 2018 GDP estimate, which was previously forecast in June at 4.4%.
The meeting may also discuss raising interest rates. The BOT Governor explained that current signs of economic recovery mean that an expansionary monetary policy of maintaining low interest rates will be less important, and Thailand will not be able to go against the current global trend of raising interest rates. However, the decision to raise rates must take into consideration numerous factors, including timing.