Broad Money Growth Accelerates On Private Demand

Economic Research	01 December 2016
Thailand
Economic Highlights
Broad Money Growth Accelerates On Private Demand Thailand’s broad money (BM) accelerated to +4.5% y-o-y in October, from +3.9% the month before. The pick-up in growth was driven by marginally higher private demand for credit and increased supply of narrow money. Going forward, we expect broad money to grow 6.1% in 2017, underpinned by stronger economic growth. Private credit expanded. Growth of private credit strengthened to 4.3% y-o-y in October, as the increase in business loans more than offset a contraction in consumer credit. Thai Baht depreciated against the USD in October. Thai Baht (THB) fell 1.2% against the USD, after an unchanged reading the month before, as funds flowed back into USD assets ahead of expected Fed tightening in December. We expect the THB to trade between a range of THB35.22-35.90/USD till year end, as the USD strengthens on Trump’s economic pledges and interest rate hike expectations. Economist:  Ng Kee Chou  | +603 9280 2179