The Bank of Thailand voted by five to two to raise the policy rate by 25 bps to 1.75 percent on December 19th 2018 meeting, as widely expected. It is the first hike in borrowing cost since March 2015, amid a slowdown in exports and tourism. The Committee said that the policy increase would help curb accumulation of vulnerabilities in the financial system in conjunction with the macro-prudential measures already implemented. For 2018, the Bank revised its economic growth forecast to 4.2 percent from 4.4 percent. Interest Rate in Thailand averaged 2.22 percent from 2000 until 2018, reaching an all time high of 5 percent in June of 2006 and a record low of 1.25 percent in June of 2003.
Interest Rate in Thailand is expected to be 1.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Thailand to stand at 2.00 in 12 months time. In the long-term, the Thailand Interest Rate is projected to trend around 2.25 percent in 2020, according to our econometric models.