BoT Sees Elevated Household Debt, Low-Rate Environment Risks As Priorities

Spot USD/THB sits at THB32.673, in close proximity to its recent cycle high of THB32.728. A move through that level would allow bulls to set their sights on Apr 28, 2020 high of THB32.533. Bears see the 38.2% retracement of Jun 11 - Jul 9 rally (THB32.079) as their initial target.

• The BoT released a statement in the wake of a meeting between the MPC and FIPC yesterday. Officials pointed to (1) elevated household debt, which reached 90.5% of GDP in Q1, and (2) preparing for macro-prudential measures to address potential build-up of risks under a prolonged low interest rate environment as two priority areas going forward.
• Separately, BoT Senior Director Chayawadee warned against significant downside risks from new strains of the virus and said that GDP may grow slower than projected in the Bank's baseline forecast. Dep Gov Supapongse added that the BoT will see if further policy steps are needed.
• According to source reports flagged yesterday, Thai cabinet may consider additional economic assistance measures for those affected by Covid-19 restrictions during its weekly meeting today. In addition, gov't spokesman said that the gov't will hold a media briefing in response to a TDRI report, which accused Thailand's leaders of mismanaging the Covid-19 outbreak.
• There is little of note left on Thailand's economic docket this week, outside of the usual update on foreign reserves, due Friday.