Free Trial
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.
THB
Spot USD/THB pushed higher as onshore Thai markets reopened, even some watchers may have deemed yesterday's monetary policy decision and statement from the BoT marginally hawkish. The rate trades +0.080 at THB33.940 after printing best levels in more than four years. A break above the THB34.000 figure would bring Jul 11, 2017 high of THB34.140 into play. Bears look for a fall through Sep 23 low of THB33.155.
- The Bank of Thailand voted unanimously to leave their benchmark interest rate on hold Wednesday. This represented a shift from last month's meeting, when two MPC members had voted to trim the policy rate by 25bp. A large majority of analysts (including us) expected the Committee to stand pat but a handful had anticipated a rate cut.
- Thailand's central bank cited "progress on vaccination and earlier-than-expected relaxation of the containment measures" as factors which will support the economy going forward. The Committee judged that the economy bottomed out in Q3 and will gradually recover from Q4.
- Policymakers affirmed their 2021 GDP growth projection of +0.7% Y/Y and returned the 2022 growth forecast to +3.9% Y/Y after downgrading it to +3.7% Y/Y last month.
- The edited minutes from this week's gathering of the Monetary Policy Committee will be published in two weeks' time (Oct 13).
- On the data front, focus turns to BoP current account balance and trade data, due today. Looking further afield, Markit M'fing PMI & Business Sentiment Index will hit the wires on Friday.
- It is worth noting that BoT Gov Sethaput will speak at the central bank's annual symposium at 09:00 ICT/03:00 BST. PM Prayuth will chair a meeting of an economic panel half an hour later to discuss measures to boost consumption and provide aid to SMEs.
Fig. 1: Bank of Thailand September Economic Outlook
Source: Bank of Thailand
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.
We are facing technical issues, please contact our team.
ok
Your request was sent sucessfully! Our team will contact you soon.
ok