Foster Recovery
The Bank of Thailand held its benchmark rate for a seventh
meeting last month. The current level will “foster ongoing
economic recovery,” according to the minutes of the meeting
released Feb. 11. The next review is March 11.
Inflation may be less than 1 percent in 2015, before
quickening to 2.5 percent in 2016, central bank Governor Prasarn
Trairatvorakul told reporters on Feb. 13.
“With inflation likely to be below 1 percent this year,
and economic performance lackluster, the BOT will likely cut its
policy rate by 25 basis points at the upcoming meeting to
support growth,” according to a Feb 2 research note by HSBC
Holdings Plc economists including Nalin Chutchotitham in
Bangkok.
The Monetary Policy Committee isn’t concerned about the
recent decline in consumer prices as it’s caused by a drop in
energy costs and is temporary, Bank of Thailand Assistant
Governor Mathee Supapongse said Feb. 3. Thai consumer prices are
forecast to increase 1.8 percent in 2015 and 2.4 percent next
year, according to Bloomberg surveys.
“Inflation will begin to accelerate toward year-end,
reinforcing view that the Bank of Thailand will keep its policy
rate on hold this year,” Toru Nishihama, an economist covering
emerging markets at Dai-ichi Life Research Institute Inc. in
Tokyo, said in an interview on Monday. “A recovery in
consumption will bring inflation.”
Foster Recovery
The Bank of Thailand held its benchmark rate for a seventh
meeting last month. The current level will “foster ongoing
economic recovery,” according to the minutes of the meeting
released Feb. 11. The next review is March 11.
Inflation may be less than 1 percent in 2015, before
quickening to 2.5 percent in 2016, central bank Governor Prasarn
Trairatvorakul told reporters on Feb. 13.
“With inflation likely to be below 1 percent this year,
and economic performance lackluster, the BOT will likely cut its
policy rate by 25 basis points at the upcoming meeting to
support growth,” according to a Feb 2 research note by HSBC
Holdings Plc economists including Nalin Chutchotitham in
Bangkok.
The Monetary Policy Committee isn’t concerned about the
recent decline in consumer prices as it’s caused by a drop in
energy costs and is temporary, Bank of Thailand Assistant
Governor Mathee Supapongse said Feb. 3. Thai consumer prices are
forecast to increase 1.8 percent in 2015 and 2.4 percent next
year, according to Bloomberg surveys.
“Inflation will begin to accelerate toward year-end,
reinforcing view that the Bank of Thailand will keep its policy
rate on hold this year,” Toru Nishihama, an economist covering
emerging markets at Dai-ichi Life Research Institute Inc. in
Tokyo, said in an interview on Monday. “A recovery in
consumption will bring inflation.”
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