Free Trial

MNI BoT Preview - September 2022: Under Pressure To Turn More Hawkish

EXECUTIVE SUMMARY

  • The Monetary Policy Committee remains under pressure to keep tightening monetary policy amid rapid slump in the baht and persistently elevated inflation, with recent data suggesting that price pressures are broadening.
  • The Fed's unwavering commitment to bring inflation under control raises the risk of further capital outflows, supporting the case for more aggressive rate hikes in EM nations.
  • The Bank of Thailand's wariness of derailing fragile economic recovery and traditionally high levels of household debt provide barriers to pre-emptive policy action.
  • We think the decision between a 25bp and 50bp rate hike will be finely balanced, with the Committee facing a difficult task.

Click here to see the full preview: MNI BoT Preview September 2022.pdf

To read the full story

Close

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.