MPC rate cut expected on easing inflation
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The Bank of Thailand's Monetary Policy Committee may cut the policy rate by 0.25 percentage point at its January 25 meeting, thanks to an easing of inflation late last year, said Tisco Securities.
Tisco expects headline inflation of 3.5 per cent this year and core inflation of 2.2 per cent, compared with 3.8 per cent and 2.4 per cent last year. This is a result of the slower pace of food-price increases as well as possible stabilisation of oil prices.
Supply-chain disruptions pulled down inflation in November and December.
Inflation in December was only 3.5 per cent year on year, while core inflation excluding volatile energy and food prices was 2.7 per cent. The full-year headline inflation in 2011 was 3.8 per cent while core inflation was 2.4 per cent.
