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Thailand: Door open for another BoT rate hike – UOB

The UOB Group economist, Enrico Tanuwidjaja, comments on the likelihood that the Bank of Thailand (BoT) will tighten interest rates again later in the year.

Key points

“The Thai economy grew less than expected in the second quarter of 2012, but the rebound in consumer spending was a welcome start to a possible faster growth spurt this quarter and the next.”

“The persistent current account balance deficit of $15bn YTD has weighed on the THB, but we expect that with rising tourism receipts, the surplus will reverse and be THB positive.” “.

“Weaker growth in the second quarter and continued inflationary pressures will not deter interest rates from rising in September, but we think the BOT will pause in November to assess new data before considering further policy tightening.” .

Source: Fx Street

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