Thailand: Door open for another rate hike by the BoT – UOB

Pablo Piovano FXStreet

UOB Group’s Economist Enrico Tanuwidjaja comments on the likelihood of further tightening by the Bank of Thailand (BoT) later in the year.

Key Takeaways

“Thai economy grew less than expected in 2Q22 but pickup in consumer spending was a welcome start for possibly faster pace of growth momentum this quarter and next.”

“Persistent current account deficit to the tune of USD15bn to-date has weighed THB down but we expect with stronger tourism receipts, reversal into surplus is abound and is positive for THB.”

“Slower 2Q growth but unabating inflationary pressures is unlikely to deter Sep’s rate hike but we reckon BOT to pause in Nov to assess the incoming data before considering further monetary policy tightening.”

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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