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Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
THAILAND
- Bank of Thailand increased its policy rate by 25bps to 0.75% after keeping rates steady since May 2020 to stimulate the economic activity following the Covid shock.
- Six policymakers voted for hike rates – out of seven – with one member calling for a 50bps hike.
- We previously saw that inflationary pressures have been accelerating in Asia/SE Asia (ex-China), ‘forcing’ central banks to start tightening monetary policy after keeping rates unchanged for nearly 2 years.
- The chart shows that CPI inflation accelerated to 7.6% in July in Thailand, diverging significantly from the BoT 3% upper tolerance band.
- *BOT: INFLATION TO REMAIN HIGH BEFORE EASING TO TARGET NEXT YEAR (bbg).
- BoT also added that rate normalization should be gradual, in line with economic activity and inflation.
- USDTHB has been retracing higher after reaching a local low at 35.30 in the overnight session; the pair is currently trading slightly below its 50DMA at 35.56. Next ST resistance to watch stands at 35.84.
Source: Bloomberg/MNI
Why MNI
MNI is the leading provider
of intelligence and analysis on the Global Fixed Income, Foreign Exchange and Energy markets. We use an innovative combination of real-time analysis, deep fundamental research and journalism to provide unique and actionable insights for traders and investors. Our "All signal, no noise" approach drives an intelligence service that is succinct and timely, which is highly regarded by our time constrained client base.Our Head Office is in London with offices in Chicago, Washington and Beijing, as well as an on the ground presence in other major financial centres across the world.
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