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Emerging Asia Economics Update

Emerging Asia Economics Update

Bank of Thailand to stay in the slow lane

The Bank of Thailand left policy interest rates on hold at 1.25% today, as was widely expected. Although the economic recovery is gaining some traction, there is little risk that inflation will develop into a problem anytime soon. We expect rates to remain on hold until Q2 2010 and then forecast hikes of only 50bps by the end of the year.

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