Thailand: Weak price pressures to persist – ANZ

Dhwani Mehta FXStreet

Analysts at Australia and New Zealand Banking Group (ANZ) believe that the price pressures in Thailand are likely to remain softer and could prompt a rate cut by the Thai central bank.

Key quotes:

“Thailand’s headline inflation slowed to 0.74% y/y in February, dipping back below the central bank’s target band of 1-3%.

The pullback mainly reflected lower energy prices, while core inflation ticked up.

The big picture is that the combination of weak price pressures, heightened growth risks, and rising pressure for a coordinated global response to the COVID-19 outbreak suggests a further rate cut by the Bank of Thailand (BoT) now looks more likely than not.”

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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