UOB Group’s Economist Enrico Tanuwidjaja comments on the likelihood of further tightening by the Bank of Thailand (BoT) later in the year.

Key Takeaways

“Thai economy grew less than expected in 2Q22 but pickup in consumer spending was a welcome start for possibly faster pace of growth momentum this quarter and next.”

“Persistent current account deficit to the tune of USD15bn to-date has weighed THB down but we expect with stronger tourism receipts, reversal into surplus is abound and is positive for THB.”

“Slower 2Q growth but unabating inflationary pressures is unlikely to deter Sep’s rate hike but we reckon BOT to pause in Nov to assess the incoming data before considering further monetary policy tightening.”