Thai central bank says economic recovery likely intact

BANGKOK  – Thailand’s economic recovery is likely intact and inflation should ease next year, the central bank chief said on Tuesday.

Bank of Thailand Governor Sethaput Suthiwartnarueput was speaking to a business seminar. The BOT has forecast economic growth of 3.3 percent for this year and 3.8 percent next year.

Sethaput reiterated that rate hikes would be gradual to contain inflation and ensure a continued economic recovery.

Last week, the BOT raised its key interest rate by a quarter point to 1 percent to tame 14-year high inflation.

The BOT forecast headline inflation of 6.3 percent for this year and 2.6 percent next year, compared with the BOT’s target range of 1 percent to 3 percent.

It expects 9.5 million foreign tourist arrivals this year and 21 million next year, versus nearly 40 million tourists in pre-pandemic 2019.