By Veronica Dudei Maia Khongwir
BENGALURU, November 27 (Reuters) – The Bank of Thailand (BOT) will keep its key interest rate at 2.50% on Wednesday, according to all economists polled by Reuters, who said a year-long tightening cycle was over.
Consumer prices fell 0.3% in October, the first time they fell in more than two years, putting inflation well below the central bank’s 1-3% target range.
Meanwhile, gross domestic product (GDP) grew by a slower-than-expected 1.5% in the third quarter, supporting the view that the BOT will draw a line under its exchange rate campaign at the Nov. 29 meeting to help economic growth.
Prime Minister Srttha Thavisin said on Thursday that the economy was in “crisis” with fewer foreign arrivals than intended.
All 28 economists in the Nov. 20-24 Reuters poll expected the BOT to maintain its benchmark one-day repurchase rate. THCBIR=ECI at 2.50% on Wednesday.
Medium forecasts showed no change to interest rates until at least July 2025.
“The policy rate is currently at a level that BOT considers neutral and recent economic data does not call for further tightening. Overall, we think the BOT will begin a prolonged pause,” wrote Krystal Tan, economist at ANZ.
“For a further rate hike, we would need to see growth and inflation stronger than what the BOT currently expects. As things stand, we think the bar is high.”
(Reporting by Veronica Dudei Maia Khongwir Polling by Devayani Sathyan Editing by Mark Potter)
((VeronicaDudeiMaia.Khongwir@thomsonreuters.com;))
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