Bank of Thailand likely to keep policy rates on hold at 1.5 pct

The Thai central bank is set to meet this week for its monetary policy meeting. According to a DBS Bank research report, the Bank of Thailand is expected to keep its policy rate on hold at 1.5 percent. The economic growth is likely to have accelerated further in the fourth quarter of 2017.

However, keeping the strong growth in export aside, private sector growth continues to be sluggish domestically. Core inflation has been stable below 1 percent for the last three years. This is an indication that domestic demand continues to be subdued.

“We see no compelling reason for the BOT to adjust its policy stance for now, particularly since the THB is still one of the better-performing currencies in the region”, added DBS Bank.

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