Further monetary tightening will be gradual and measured, and can be adjusted if necessary, after the monetary policy committee raised its key interest rate late last month, minutes of the meeting showed on Wednesday.
On Nov 30, the Bank of Thailand's (BoT) monetary policy committee voted unanimously to raise the one-day repurchase rate by a quarter point to 1.25% to curb inflationary pressures. It will next review policy on Jan. 25, when most economists predict a further hike.
The committee assessed that headline inflation would decline and return to the central bank's target range of 1% to 3% in the second half of 2023, the minutes said. The BoT has raised the key by a total 75 basis points since August. The tightening cycle has been less aggressive than many of its regional peers as Thailand's economic recovery has lagged that of other Southeast Asian countries, with its crucial tourism sector only starting to pick up this year.
"The Thai economic recovery would continue to gain traction, with tourism and private consumption as key drivers that would help lessen the impact of the global slowdown," the minutes said.
At the rate meeting, would grow 3.2% this year and 3.7% in 2023, down from previous forecasts of 3.3% and 3.8%, respectively. Last year's growth of 1.5% was among the slowest pace in the region.