BANGKOK – The Bank of Thailand is facing a tough policy decision, on Wednesday the Bank of Thailand (BOT) will weigh in on monetary policy.
The Bank of Thailand (BOT) is faced with choosing between cutting interest rates to bolster a flagging economy or keeping them on hold amid rising concerns about debt levels.
Moody’s Analytics expects the BOT to stand pat with its current 1.5 percent benchmark rate.
“The Thai economy is off to a poor start in 2016. Weak external demand continues to be a drag on exports. This is hitting export-oriented manufacturers, leading to declining industrial production. The domestic economy is not faring much better,” it said in a note Friday.
“While these conditions would suggest an easing of monetary policy, we think this is unlikely. There are rising concerns about private debt levels, which would only be exacerbated by lower interest rates.”
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