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Recovery in Thailand unlikely to lead to policy tightening

Thailand’s economy has rebounded strongly over the past year, with Q3 GDP figures due to be published on Monday likely to show the country growing at its strongest pace in over four years. The recovery is leading to speculation that the Bank of Thailand may soon need to tighten policy. But with plenty of spare capacity left in the economy, we think the central bank will be in little rush to raise interest rates.

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