Thailand’s worsening growth outlook prompts split policy vote

August 4, 2021

BANGKOK-- While the Bank of Thailand (BoT) today opted to keep its policy rate unchanged at 0.50%, the decision was split, with two of the six members voting in favour for a cut.

ANZ Bank says the vote split, along with heightened growth uncertainties, increased the likelihood of a rate cut later this year, but it added that, ultimately, a recovery would hinge more on the vaccination roll-out and fiscal policy.

"We are keeping our forecast for no policy rate change this year for now, but acknowledge that a further deterioration in the virus situation will raise pressure on the BoT to act and pave the way for a 25bp rate cut as soon as its next meeting in September," ANZ said in a research note.  (ATI).