BANGKOK Thailand's central bank raised its key interest rate for a seventh straight meeting on Wednesday (Aug 2) as inflationary risks linger and the economy continues to grow despite rising global risks and post-election political uncertainty at home.

The Bank of Thailand's (BOT) monetary policy committee voted unanimously to raise the one-day repurchase rate by 25 basis points (bps) to 2.25%, as expected by 18 of 22 economists polled by Reuters.

In a statement, the BOT said core inflation has edged lower but is expected to level off at a higher level than in the past, while headline inflation is expected to stabilise within its target range.

It said the economy should continue to expand, driven mainly by tourism and private consumption, but said there were growing risks from weak exports and domestic political uncertainties.

With Wednesday's move, the BOT has raised the key rate by a 175 basis points since last August from a record low of 0.50%.

Among economists who had a longer-term view in the Reuters poll, 13 of 17 respondents expected the BOT to maintain the rate at 2.25% until at least mid-2024. Only two economists forecast a cut by then, while two said it would peak at 2.50%.

Investors are awaiting the formation of a new government after prime ministerial candidate Pita Limjaroenrat, whose Move Forward party secured a stunning election win in May, failed in his bid for prime minister.

Thailand's parliament is scheduled to meet on Aug 4 to try again to pick a prime minister as a political stalemate drags on more than two months after the election.

  - Reuters