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MNI Bank Of Thailand Preview - November 2022: Gradual 25bp Tightening To Continue

EXECUTIVE SUMMARY

  • The Bank of Thailand meets on Wednesday November 30 and is widely expected to hike rates 25bp for the third time bringing rates to 1.25%. It was one of the last Asian central banks to begin tightening.
  • The BoT said in the statement from its last meeting that policy rates should continue to be normalised but in a “gradual and measured manner”. And this month Assistant Governor Piti Disyatat told a conference that the BoT doesn’t want to surprise the markets.
  • The economy is recovering, core inflation hasn't peaked yet and is slightly above the target band, and short-term inflation expectations are elevated. But with headline inflation moderating, a turn in FX flows and the recovery still in its early stages there is currently little reason to increase the pace of tightening.

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BoT Preview - November 2022.pdf

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