Thailand: BoT seen on hold this week – UOB

Lee Sue Ann, Economist at UOB Group, comments on the upcoming BoT event later this week.

Key Quotes

“We continue to observe that policy space remans very limited, while fiscal policies will likely do the heavy lifting in supporting economic growth.”

“We keep our call for BoT to leave its benchmark rate unchanged at 0.50% for the rest 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 25bps rate cut could materialize then.”