Thailand holds key rate as political uncertainty adds to risks
The central bank's seven-member Monetary Policy Committee voted 6-1 to maintain the one-day repurchase rate steady at 1.75 per cent at Wednesday's (Jun 25) meeting. The hold was predicted by 15 of 21 economists surveyed by Bloomberg, with the rest forecasting a quarter-point cut. April saw the first back-to-back cut since 2020.
Governor Sethaput Suthiwartnarueput had warned in May that the BOT had limited policy 'ammunition' after 75 basis points of rate cuts since October. Still, last week's fracture in the ruling coalition added to risks for South-east Asia's economy, just as the government holds talks to avert a threatened 36 per cent tariff on exports to the US.
UBS Group has downgraded Thai stocks to neutral from overweight on concerns over policy direction and investor sentiment. BLOOMBERG
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