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MNI BoT Preview - March 2022: On Hold Even As Russia War Boosts Inflation, Limits Tourism

EXECUTIVE SUMMARY

  • We agree with the consensus view that the BoT will keep interest rates unchanged this week.
  • Russia's ongoing invasion of Ukraine has exacerbated pre-existing inflationary pressures, pushing the headline rate of consumer price growth well above the central bank's target range.
  • However, rising costs of living have so far been addressed by the government, with the Bank of Thailand waiting on the sidelines until economic recovery gathers more steam.

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