Thai Central Bank Pledges Long Rate Pause to Support Economy

The Bank of Thailand will keep its interest rate at the current level “for as long as possible” to support the economy, even though inflation is set to accelerate due to the Middle East conflict, according to Governor Vitai Ratanakorn.

“Inflation will definitely accelerate with oil price hikes and supply disruptions,” Vitai told reporters in Bangkok Thursday. “But we will refrain from raising the interest rate as long as possible because higher interest rate will not dampen inflation.”