ANZ analysts note that in a surprise move, the Bank of Thailand (BoT) today cut its policy rate by 25bps to 1.50% in a five-to-two vote.
Key Quotes
“The BoT cited a deterioration in the growth outlook and lower-than-expected inflation as key factors behind the decision.”
“We now expect a further rate cut, given that the BoT has signalled that it still has “policy space left”.”
“If incoming economic data remain sluggish over the coming weeks, we would not be surprised to see a back-to-back cut by the BoT to take the policy rate to 1.25% at its next meeting on 25 September.”
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