Broad Money Growth Stable; “Brexit” Expected To Be Negative But Manageable

Economic Research	01 July 2016
Thailand
Economic Highlights
Broad Money Growth Stable; “Brexit” Expected To Be Negative But Manageable Thailand’s broad money supply (MS) grew +3.7% y-o-y in May, retreating from a +4.2% gain the month before. This was due to a slower pace of growth in net foreign position but mitigated by an increase in public and private demand for credit during the month. The decision for UK to secede from the EU has planted uncertainty and roiled the currency markets, which will dampen demand for Thailand’s exports and tourism sectors. Consequently, demand for credit is expected to slow to +3.5% in 2H, resulting in a full year increase of 3.7%. Economist:  Ng Kee Chou  | +603 9280 2179
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