BoT seen among last to hike as Fed signals liftoff

Thailand’s central bank is expected to be the last in Southeast Asia to lift rates, leading to one of the steepest yield curves in the region as other nations brace for the first Federal Reserve hike since 2018.

Shorter-duration Thai bonds remain buoyed by a dovish Bank of Thailand (BoT) policy that contrasts with an increasingly hawkish Fed, which on Wednesday signalled a March rate liftoff. Fed Chair Jerome Powell also did not rule out moving at every meeting to tackle the highest inflation in a generation.  

Confronted by a subdued tourism recovery, tighter social distancing restrictions and weak domestic investor demand at a time of high bond supply, the BoT is likely to allow…