ANZ analysts note that the Bank of Thailand kept the policy rate unchanged at 1.75% today and extending the streak of unchanged rates for three straight meetings since the 25bp hike last December.
Key Quotes
“The BoT appears reluctant to completely close the door on monetary tightening.”
“Nonetheless, the BoT also acknowledges that growth risks are rising, noting in its statement that the economy was “expected to expand at a slower pace than previously assessed”.”
“In terms of inflation, the BoT expects it to be at the low end of its 1-4% target range.”
“Overall, we think the combination of rising growth risks and benign inflation will make it difficult for the BoT to justify another rate hike.”
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