International financial analysts expect Thailand’s policy rate to be cut next year
Two international analysts have said they expect the Bank of Thailand to cut its policy interest rate next year due to a drop in the country’s inflation rate.
In a statement issued on Tuesday, Standard Chartered Bank said it expected the central bank to maintain its policy rate at 2.5% when it holds its final meeting with the Fiscal and Monetary Policy Committee on November 29.
However, it said it expected BOT to cut the policy rate next year due to lower growth and lower inflation.
Standard Chartered said its GDP growth forecast for Thailand this year will be lowered from 3.3% to 2.5% and for next year from 4.2% to 3.2%.
Meanwhile, Japan’s Nomura Holdings said it believes BOT will cut the policy rate in the second quarter of next year.
The financial holding firm said it expects BOT to leave its policy rate unchanged at 2.5% in November, but expects a cut to come as early as the second quarter of next year due to persistently negative inflation.
