Thailand and Mauritius Central Bank Rate Hikes
September 28, 2022
The Bank of Thailand’s policy rate was lifted 25 basis points as expected to 1.0%. That was the second such increase, the first being done just last months. At 1.0%, the rate remains 25 basis points less than Thailand’s pre-pandemic level of 1.25%. CPI inflation had climbed to 7.86% by August, but BOT officials project such receding to 2.6% next year. According to today’s statement, “The Committee is ready to adjust the size and timing of policy normalization should the growth and inflation outlook shift from the current assessment.”
A 75-basis point hike in the Bank of Mauritius policy interest rate today was the third increase of 2022 following ones in March and June totaling 40 basis points combined. Although back at its February 2020 level, the 3.0% new interest rate is far lower than CPI inflation, which has advanced to a 14-year high of 11.5%. An accompanying statement characterizes today’s move as an appropriately more aggressive normalization of interest rates and forewarns that “the MPC will continue to monitor the economic situation closely and stands ready to convene between its regular meetings, if the need arises.”
Copyright 2022, Larry Greenberg. All rights reserved. No secondary distribution without express permission.
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