BoT likely to keep policy rates on hold

The Bank of Thailand (BoT) will hold its regular meeting on 10 June. The market's expectations for the BoT's policy rate decision are mixed. The BoT will keep its policy rate on hold at 1.50% at this meeting, based on two key factors, says Standard Chartered in a report on Friday. 

• First, a recent weaker Thai baht should reduce pressure on an additional rate cut for the time being. The BoT has been more focused on the exchange rate while formulating its monetary policy stance in an attempt to support the export sector. 
  
  
• Second, the BoT is likely to wait for the two consecutive rate cuts in March and April to have pass-through effects on the economy, before making a further move.