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2026-05-26 11:46:16
[Bank of America Securities: Bank of Thailand to Ignore Supply-Side Inflation Shocks and Keep Interest Rates Unchanged Until 2027] (1) Bank of America Securities economists said in a report that the Bank of Thailand is unlikely to raise interest rates anytime soon. They expect overall inflation to peak at around 5% by the end of 2026 and then fall back as the energy base effect fades. (2) Market prices have already priced in expectations of two rate hikes this year, but Bank of America believes the Bank of Thailand will ignore supply-side inflation shocks. Economists pointed out: "Raising interest rates against the backdrop of an oil shock that monetary policy cannot address is likely a policy mistake." (3) Bank of America expects the Bank of Thailand to maintain its policy rate of 1.00% until the end of 2026 and for most of 2027.
