Analysts at TD Securities are expecting Bank of Thailand to ease its benchmark policy rate by 25bp to 1.25%.
Key Quotes
“One of the BoT’s major concerns is the strength of the THB, which has outperformed other Asian currencies this year. BoT cuts its growth forecast at its last meeting and forecasts a contraction in exports this year. Meanwhile inflation remains benign at 0.32% in September, well below target and is likely to remain subdued over the coming months.”
“We see a small risk that high household indebtedness could keep the BoT on hold, but believe that other factors noted above outweigh such a risk.”
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