Mr. Paiboon Kittisrikangwan, Assistant Governor, Bank of Thailand, The MPC judges that the economic recovery has become more evident and the economy should continue to grow, thus lessening the need for an exceptionally accommodative monetary policy. With a view to bringing policy interest rate closer to normal levels, the MPC therefore decided to raise the policy interest rate by 0.25 per cent per annum, from 1.50 to 1.75 per cent per annum, effective immediately.

The Monetary Policy Committee (MPC) publishes the Inflation Report on a quarterly basis to emphasize transparency and accountability in the policymaking process. To enhance public understanding of policy issues, the Inflation Report provides data and information employed by the MPC in determining the direction of monetary policy. (click to read more)

The MPC considers that an inflation target for core inflation of 0.5 - 3.0 per cent is appropriate for the Thai economy. This target provides sufficient flexibility for economic growth, and at the same time will help cushion temporary economic shocks, minimizing the need for the MPC to adjust monetary policy frequently, thereby reducing short-term interest rate volatility and promoting financial stability. (click to read more)

The Thai baht effective exchange rate takes into account a basket of currencies of important trading partners and competitors - and not just the US Dollar. (click to read more)

The Monetary Policy Committee, or the MPC, is responsible for monetary policy decisions. (click to read more)