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Central Bank Keeps Policy Rate Unchanged

THAILAND

The Bank of Thailand kept its benchmark interest rates unchanged at 2.50% in a unanimous decision, with one MPC member absent.

  • The central bank cut its GDP forecasts for 2023 and 2024 to +2.4% (from +2.8%) and to +3.2% Y/Y (from +4.4%) respectively.
  • Average headline CPI is seen at +1.3% Y/Y in 2023 and +2.0% in 2024, with core inflation expected to be at +1.3% and +1.2% respectively.
  • The baht has shown muted reaction to the decision, given that it was expected by all economists polled by major news wires.

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