Inflation remains subdued, even as regional neighbours take action
The Bank of Thailand is expected to keep interest rates steady as the nation lacks significant inflationary pressure, even as some regional central banks hiked rates to cope with rising prices.Kobsak Pootrakool, senior executive vice-president and chief economist at Bangkok Bank, said the central bank would likely maintain its policy rate at 1% because Thailand has not faced the same inflationary pressures as several other countries in the region.
Bank Indonesia raised its benchmark rate by 50 basis points to 5.25% earlier this month, seeking to shore up the rupiah and contain inflation risks linked to higher oil prices and global economic uncertainty.
Meanwhile, the Philippine central bank raised its policy rate by 25 basis points to 4.5% in April, while signalling the possibility of another off-cycle rate hike due to rising inflation and peso weakness.
Thailand's headline inflation has consistently tracked below its regional peers, hovering near zero and even dipping into negative territory, ranking among the lowest in Southeast Asia.
