Stimulus to drive Thai economy, 4.8% growth tipped for 2015

September 18, 2014

BANGKOK - Active use of fiscal stimulus will be Thailand’s main economic policy driver, with monetary policy shifting to a more neutral stance, according to ANZ Bank, which is predicting GDP growth of 4.8% for Thailand in 2015 compared with 1.3% for 2014.

The central Bank of Thailand, which expects a V-shaped recovery, has again maintained interest rates at 2% since March last year. ANZ says d Domestic sentiment has improved markedly post-coup, evident in the dramatic ascent of the ANZ-Roy Morgan Thailand consumer confidence index.
“Inflationary pressures are contained at this juncture, with price controls offsetting demand cost pressures,” ANZ says. “In view of the tentative stabilisation in recent economic activity as well as fiscal tailwinds, the Bank of Thailand is likely to pause for the rest of this year.

“We expect the next move to be a rate hike, likely in Q1 2015 when a pick up in economic growth momentum is more firmly entrenched. “  www.live.anz.com (ATI).