Thailand Holds Key Rate as Economic Growth Forecasts Raised

By Suttinee Yuvejwattana and Natnicha Chuwiruch

 

-- All 21 economists predicted the decision to keep rate at 1.5%

-- Central bank raised GDP growth forecasts for 2017 and 2018

 

Thailand’s central bank kept its benchmark interest rate unchanged near a record low in the face of subdued inflation, and raised economic growth forecasts for this year and next.

 

Monetary policy committee members voted unanimously to keep the one-day bond repurchase rate at 1.5 percent, where it’s been since 2015, according to a Bank of Thailand statement on its website on Wednesday. All 21 economists surveyed by Bloomberg predicted the decision.

 

Full story: https://www.bloomberg.com/news/articles/2017-12-20/thailand-holds-key-rate-as-economic-growth-outlook-strengthens

 

-- Bloomberg 2017-12-20

16 hours ago, webfact said:

keep the one-day bond repurchase rate at 1.5 percent

Just recently, according to the Kasikorn Research Centre:

Baht value is expected to be about Bt34 per dollar compared with an average Bt 32.7 this year.

http://www.nationmultimedia.com/detail/Economy/30334327

The Federation of Thai Capital Markets Organization expects an expected adjustment in the United States’ policy interest rate over the next three months.

https://www.thaivisa.com/forum/topic/1016576-investor-confidence-up-as-fetco-sees-growth-next-year/?utm_source=newsletter-20171220-0717&utm_medium=etomail&utm_campaign=news

 

Trump's pick for Federal Reserve governor Jerome Powell is likely to raise rates.

https://www.wsj.com/articles/powell-suggests-fed-is-likely-to-raise-rates-in-december-1511886809

So if BoT doesn't raise interest rates to deflate the value of the baht, a stronger dollar will do so. Still a gamble to rely on the US to lower the value of the baht instead of BoT being proactive.