Analysts predict policy rate cut next monthThe Bank of Thailand is expected to tweak the policy rate as early as its next meeting in April, reducing the rate 0.25 percentage points as inflation continues to decline as a result of the government's electricity price subsidies and stalled economic growth, say analysts. Last month was the 10th consecutive one where CPI inflation was below the target range of 1% to 3%. "Even if the decision is not unanimous, we expect the Bank of Thailand to tweak its policy rate with a 25-basis-point cut to 2.25% at its next meeting on April 10, largely to bring the real policy rate to levels more congruent with weaker growth and lower inflation," said the group. BofA, a unit of Bank of America, said the notable dip in inflation expectations and lower growth potential would call for a lower neutral interest rate. "As a result, we maintain our view that there will be two rate cuts in 2024, as the Bank of Thailand recalibrates its policy stance," he said.

Source: Bangkok Post March 08, 2024 10:35 UTC