Thailand hikes key interest rate to 1.25%, lowers growth outlook

Central bank walks tightrope between interest rate gap, economic recovery

The Bank of Thailand again raised its policy rate a quarter point to 1.25% on Nov. 29 as it tries to tamp down inflation and keep pace with interest rate rises elsewhere to shore up the baht. © Reuters

APORNRATH PHOONPHONGPHIPHAT, Nikkei staff writer

November 30, 2022 16:03 JST

Updated on November 30, 2022 16:51 JST

BANGKOK -- The Bank of Thailand raised its key interest rate by a quarter point to 1.25% on Wednesday for the third time in a row this year to keep inflation in check, bringing the rate to its highest since February 2020.

That matched market expectations and a Reuters poll, where 19 economists of 21 said the Thai central bank would lift the rate by 0.25 percentage point at its policy meeting on Wednesday. The bank raised rates by 25 basis points in both August and September.