Thailand's monetary tightening still has further to go

The Bank of Thailand (BoT) held its policy rate at 1.75% today but maintained a tightening bias. Domestic demand looks well placed to drive GDP growth, while the strong recovery should increasingly push against capacity constraints and lift inflation. We expect the repo rate to be hiked in December. Despite recent moves by policymakers, the baht is likely to strengthen further.

Subscriber content

Read this in full, free

Start a free trial and use one of your 10 free starter credits to unlock this piece.


Free. 10 articles. No card required.
By completing this form you are agreeing to our Terms and Conditions for the provision of a free trial of Capital Economics' services. We take your privacy seriously and will not share your details with others without your consent. By providing your details, including your email address, you are consenting to Capital Economics sending you macroeconomic commentary and analysis. You can unsubscribe at any time. See our Privacy Policy for more information.

Already a client or trialist? Log in to read this.