Thailand’s inflation rate fell for the fifth straight month in May amid lower electricity and fuel prices. However, experts warned that inflation could rebound due to a possible increase in minimum wages and the upcoming drought season.
Inflationary factors are starting to stabilize, with the Dubai crude price remaining under 100 USD per barrel. At the same time, the Thai baht remains within the predicted range
Thai growth forecasted at 2.8%, Asia Sails into persistent Headwinds (IMF)
Asia Sails into Headwinds from Rate Hikes, War, and China Slowdown with growth forecasts lowered for this year and 2023, while inflation exceeds central bank targets in most countries
The continuing strict dynamic zero-COVID policy and real estate sector weakness in China and potential recessions in the United States and the euro area are weighing on the region’s outlook.
Bank of Thailand raises policy rate by 0.25% from 0.75 to 1 Percent
The depreciation of the baht against the US dollar has been rapid and continuous due to the strengthening of the US dollar but is still in line with regional currencies.
The BOT is one of the few major Asian central banks to have kept rates at record lows since the pandemic began, but it recently signaled a policy shift as inflation surged to a near 14-year high in May.
