BENGALURU- The Bank of Thailand (BOT) will keep its key interest rate unchanged for a third consecutive meeting on Wednesday, according to a Reuters poll of economists who brought forward their first rate cut expectations by nearly a year.
Consumer inflation has been below the central bank’s 1-3 percent target range for nearly a year, fueling expectations for a rate cut. It rose to -0.47 percent in March from February’s -0.77 percent .
Moreover, Southeast Asia’s second-largest economy unexpectedly contracted in the final quarter of 2023, adding pressure on the BOT to ease monetary policy to support economic growth.
Although analysts have brought forward their rate cut expectations in the April 1-8 poll, they still forecast the central bank to wait for the US Federal Reserve to ease first.
Over 60 percent of economists, 16 of 26, predicted the BOT to keep its benchmark one-day repurchase rate at 2.50 percent on April 10. The other 10 forecast a quarter-point cut to 2.25 percent .
That is a drastic change from a February poll when a strong majority of economists expected rates to stay unchanged this quarter and median forecasts showing the first rate cut in Q1 2025.
