Thailand central bank increased its key interest rate by 25 bps to 1.75%, in line with expectations, citing economic growth and inflation outlook. The economy is projected to grow by 3.6% in 2023 and 3.8% in 2024, bolstered by tourism and private consumption. While headline inflation is expected to return to the target range of 1%-3% by mid-2023, high core inflation remains a risk due to demand-side pressures. The baht’s volatility against the USD continues amid global economic uncertainty due to banking stresses in advanced economies.