BoT Held Rates But Cited Increased Downside Risks to Economy

12 May 2016

Rates & FX View

BoT Held Rates But Cited Increased Downside Risks to Economy

Highlights

Highlights

¨                  BoT MPC voted unanimously to maintain the policy rate at 1.50%, underpinned by the gradual pace of recovery.

¨                  Risk to economic growth however tilted to the downside, exacerbated by sluggish private consumption and private investments.

¨                  Strength of THB remains a concern for BoT.

¨                  Scope for another 25bps BoT rate cut over the coming months.

¨                  Muted movements on THB and THaiGBs post MAS MPC announcement; keep neutral stance on THB and mild underweight duration bias on ThaiGBs.