Bank of Thailand likely to keep rates unchanged through 2016

Bank of Thailand stood pat in its policy rate at 1.50%, consistent with consensus expectations. This was a unanimous decision, indicating that MPC does not see any risks that needs imminent monetary easing.

Today's decision reflects the central bank's "wait and see" stance, before the FOMC meeting to avoid excessive volatility in the market. The bank may also assess the effect from recent government measures to improve growth.

In an environment of weak growth and low inflation, we expect the BoT to keep monetary conditions accommodative. 

"We believe the BoT is likely to keep rates unchanged through 2016, with a bias for a weaker exchange rate. However, if the THB were to appreciate materially, we would not rule out the possibility of rate cuts aimed at weakening the currency", says Barclays in a research note.