Thailand BoT to indicate comfort with its policy stance

BoT continues to indicate comfort with its policy stance, but the risk remains for further cuts. One trigger for further easing would be a renewed strengthening in the THB, which continues to draw support from a sharply widening current account surplus and has become a key policy focus of late.

A further trigger would be an additional material weakening in domestic demand conditions. The sluggish pace of the recovery will continue, but that the risk of further near-term easing has diminished somewhat given the recent stability in the THB.