Thailand raises interest rates by 25 basis points

ISTANBUL

The Bank of Thailand increased its policy interest rate by 25 basis points to 1.75% on Wednesday.

The bank said the global economic uncertainty has increased as part of the persistent inflationary pressures and the ongoing banking issues in advanced economies.

The headline inflation rates would likely return to the target range in the middle of the year, but the core inflation remains elevated with upside risks, the bank said.

"Headline inflation would likely return to the target range by mid-2023, and is projected to decline to 2.9 and 2.4 percent in 2023 and 2024," it added.

The bank also expected that the country's economy will expand by 3.6% this year and 3.8% next year.