Emerging Asia Economics Update
Thai rate hike the first of a brief tightening cycle
Thailand’s decision to raise interest rates today (by 25bps to 3.5%) was the first in more than two years. However, growing downside risks to growth, despite the recently announced fiscal stimulus, suggest that this tightening cycle will be short in duration and small in magnitude. We expect rates to be raised only once more next month, to end the year at 3.75%.
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