Bank of Thailand likely to keep interest rates on hold at 1.5 pct

The Bank of Thailand is set to meet this week for its policy decision. According to a DBS Bank research report, the Thai central bank is likely to maintain its policy rate stable at 1.5 percent.

The nation’s headline consumer price inflation decelerated to 0.4 percent year-on-year in the month of February, while the core inflation was steady at 0.6 percent. Without any sign that underlying consumption has accelerated in recent months, the central bank is not expected to be in any rush to tighten its policy stance.

There is also no reason to lower rates, as GDP growth momentum has picked up since the second half of 2017, driven by export growth. The Bank of Thailand is expected to maintain its current stance for a while longer, added DBS Bank.

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