The Bank of Thailand is still likely to keep its policy rate on hold at 1.00% through end-2027, UOB economists say in a note. A rate cut wouldn't address an imported energy shock, they say. Conversely, a hike would risk further tightening financial conditions for households and small and medium-size enterprises, and shouldn't be necessary unless a second-round of inflation or disorderly FX pass-through becomes more evident. "The more appropriate policy mix is therefore a prolonged monetary hold, targeted fiscal relief, energy-cost smoothing, debt restructuring, and credit-support measures," UOB says. (amanda.lee@wsj.com)
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Thai Central Bank Likely to Hold Rate Through End-2027 — Market Talk
The Bank of Thailand is still likely to keep its policy rate on hold at 1.00% through end-2027, UOB economists say in a note. A rate cut wouldn't address an imported energy shock, they say. Conversely, a hike would risk further tightening financial conditions for households and small and medium-siz…