UOB Group’s Economist Barnabas Gan reviews the latest monetary policy meeting by the Bank of Thailand (BoT).
Key Quotes
“The Bank of Thailand (BOT) kept its one-day repurchase rate unchanged at 0.50% as widely expected for the eighth consecutive meeting on 05 May 2021. The last time it made a move was in May 2020, when the benchmark rate was cut by 25 bps. The decision to keep its policy rate unchanged was voted unanimously by all committee members.”
“Policy-makers kept its negative tone in the latest monetary policy statement, in light of the recent spike in COVID-19 infections, citing that ‘economic growth is likely to sharply slow due to the third COVID-19 wave’.”
“As expected, BOT sees downside risks to its current GDP growth outlook at 3.0% in 2021. As such, growth is expected to slow to a range of between 1.0% and 2.0% in 2021. For 2022, BOT adjusted its growth outlook to a range of between 1.1% and 4.7%.”
“The economic momentum in 2021 will depend on the pace of vaccination rollout in Thailand, which in turn will impact tourism demand.”
“We continue to observe that policy space remains very limited, while fiscal policies will likely do the heavy lifting in supporting economic growth. In all, we keep our call for BoT to leave its benchmark rate unchanged at 0.50% for the whole of 2021. Still, Thailand’s economic growth is likely to be uneven, amid pronounced downside risks should COVID-19 worsens. Should macroeconomic fundamentals stay unexpectedly subdued into 2H21, a 25 bps rate cut could materialise then.”
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers. The author will not be held responsible for information that is found at the end of links posted on this page.
If not otherwise explicitly mentioned in the body of the article, at the time of writing, the author has no position in any stock mentioned in this article and no business relationship with any company mentioned. The author has not received compensation for writing this article, other than from FXStreet.
FXStreet and the author do not provide personalized recommendations. The author makes no representations as to the accuracy, completeness, or suitability of this information. FXStreet and the author will not be liable for any errors, omissions or any losses, injuries or damages arising from this information and its display or use. Errors and omissions excepted.
The author and FXStreet are not registered investment advisors and nothing in this article is intended to be investment advice.
Recommended content
Editors’ Picks
EUR/USD holds above 1.0650 after US data
EUR/USD trades in the upper half of its daily range slightly above 1.0650 in the American session on Friday. Following the mixed PMI data releases from the US, the US Dollar struggles to find demand helps the pair holds its ground ahead of the weekend.
GBP/USD recovers modestly, trades above 1.2250
GBP/USD gained traction and advanced above 1.2250 in the second half of the day on Friday, erasing a large portion of its daily losses in the process. The improving risk mood, as reflected by rising US stocks, limits the US Dollar's gains and provides support to the pair.
Gold consolidates above $1,920 ass US yields edge lower
Gold price clings to small recovery gains above $1,920 following Thursday's sharp decline. Following the mixed September PMI data from the US, the benchmark 10-year US Treasury bond yield is down nearly 1% on the day at around 4.45%, allowing XAU/USD to stay in positive territory.
FTX fights to clawback $157 million from former employees while creditors struggle with $7.9 billion in claims
FTX exchange initiated legal proceedings against former employees of Salameda, a Hong Kong incorporated entity that is affiliated with the platform.
Cainiao subsidiary to register for IPO as soon as next week
BABA stock surged more than 4% in Friday’s premarket after the Chinese ecommerce leader announced that its shipping and logistics business, Cainiao, will file for an initial public offering (IPO) in Hong Kong as soon as next week.