Leading economists anticipate that the Bank of Thailand will initiate rate cuts in the second half of this year, potentially reducing the policy rate to 2%. This prediction aligns with the current economic status of the country and the assumption of an impending rate cut by the US Federal Reserve in the second quarter.
Amonthep Chawla, the chief economist at CIMB Thai Bank (CIMBT), anticipates two quarter-point rate cuts this year, the first around August and the second in the final quarter. Consequently, the policy rate, presently at 2.5%, is projected to drop to 2% by the end of the year.
This forecast is made in light of the country’s low inflation and economic growth. Currently, the inflation rate remains below the central bank’s target of 1-3%, while Thailand’s GDP growth is approximately 3% below the potential rate.
Under ordinary circumstances, CIMBT predicts a GDP…
