Bank of Thailand likely to keep key interest rate on hold in November

The Bank of Thailand is set to meet this week for its interest rate decision. According to a DBS Bank research report, the Bank of Thailand is likely to keep the key interest rate on hold at 1.5 percent. In spite of the BoT talking up the market earlier in the year, rate hikes are not imminent. Inflation risks are non-threatening with October’s figure coming in below the consensus expectations.

Growth targets have been kept the same, although exports are seen weakening on a possible fallout of trade tensions and base effects. Thai baht came under pressure last month; however, it continues to be a regional outperformer, thus lowering the need to tighten policy as a currency defence.

“Instead, markets will await clarity on likely curbs on mortgage lending, with indications that 80% loan-to-value limit is in the pipeline, particularly for high-value residential property and second purchases to tackle speculative interests”, added DBS Bank.