Rising prices of goods and services are expected to stabilise as inflationary pressure has been easing since the peak of headline inflation in the third quarter, according to executives of the Bank of Thailand.
A tightening of Thai monetary policy will be conducted so it does not disrupt the recovery of Southeast Asia's second-largest economy, central bank officials said on Monday, reinforcing market expectations of interest rate hikes later this year.
Thailand's central bank has announced that any hikes in its benchmark interest rate to tame above-target inflation would be gradual, as the economy faces a slow recovery and a weakening baht currency.