It will next review policy and update economic forecasts on March 29, when most economists forecast a further rate hike. The BOT's current forecast is for economic growth of 3.7% this year. Last week, Deputy Prime Minister Supattanapong Punmeechaow predicted growth could reach 4% this year, helped by a tourism boom.
The committee viewed that the economy would continue to
expand, with tourism and private consumption gaining traction
thanks to the return of Chinese tourists, the minutes said.
Inflationary risks had increased and warranted close
monitoring since, while headline inflation would continue to
decline, "there was a risk that core inflation would stay high
for longer than expected," the minutes said.
Headline inflation cooled to its lowest rate in nine
months of 5.02% in January, but was still well above the BOT's
target range of 1-3%.
The baht appreciated against the dollar due to
expectations of dovish U.S. tightening and China’s reopening,
which would benefit Thailand's tourism, the minutes said, adding
the committee would closely monitor volatility in the foreign
exchange market.
(Reporting by Orathai Sriring
Editing by Ed Davies)
