After the MPC unanimously resolved to raise the policy rate by 0.25 percent to 2.25 percent per year, the highest level in 9 years, considering that the economy is likely to continue expanding to its potential. Although the recent external demand slowed slightly, it is expected to gradually improve in the period ahead as inflation has decreased and is likely to remain stable within the target range. But there is also a high risk from food prices that may increase if El Nino is more severe than expected.

Krungthai COMPASS estimates that this upward interest rate cycle will reach 2.5% (terminal rate), reflecting from the MPC's view that the economy is likely to expand continuously both in 2023 and 2024, and inflation will continue to grow. held at a high level There are also high risks. However, the MPC's next decision depends on economic factors and political uncertainties.-Thai News Agency

Source: Thai News Agency