Analysts at TD Securities point out that the market expectations of a rate hike by BoT at today’s meeting grew in the wake of stronger than expected Q2 GDP data (4.6% y/y) and hawkish comments from BoT governor Santiprabhob, which he downplayed later.
Key Quotes
“Headline inflation has finally moved back within the BoT’s target range, albeit at the lower end while core inflation remains low, suggesting no rush to tighten policy. Separately THB has outperformed and unlike the likes of Indonesia, BoT does not need to hike rates to defend the currency. As such we expect the BoT to stay on hold.”
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