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The Bank of Thailand cut its policy rate by 25 bps to support growth, leaving it at a record low of 1%. ANZ updates its forecast for the Thai economy. 

Key quotes

“In a unanimous decision, the Bank of Thailand (BoT) today lowered its policy rate by 25bps to a new record low of 1.00% to support growth.”

“The statement flagged significant downside risks to its 2020 growth projection (2.8%) amid the novel coronavirus outbreak, delay in the budget bill, and drought. We recently downgraded our own forecast materially, to 2.3%.”

“We expect the BoT to adopt a wait-and-see stance for now, but acknowledge that a further rate cut cannot be ruled out, especially if the virus spread is prolonged and fiscal policy continues to be handicapped by legal bottlenecks.”