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MNI BoT Preview - February 2022: In No Rush To Tighten

EXECUTIVE SUMMARY

  • Sell-side desks call for no change to the benchmark policy rate this week in virtual unison, with the Bank of Thailand expected to be among the last central bank in the region to start the tightening cycle.
  • Policymakers will likely prefer to wait until recovery in the critical tourism industry picks up momentum, after consecutive waves of Covid-19 infections and restrictions on international travel wrought havoc on the sector.
  • Headline inflation has accelerated but there are no signs of a serious threat to overall price stability. Core prices remain subdued, while gains in food and energy prices are driven by supply-side factors already being addressed by the government.

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