Tuesday, April 16, 2024

Thailand’s Economic Outlook: SCB EIC Predicts Key Interest Rate Cuts in 2024

SCB EIC predicts two rate cuts by BOT in H1, reducing policy rate to 2%. Cuts aim to stimulate economic activity and adjust to slower growth, with baht stabilization expected.

The EIC Predicts Two Rate Cuts by Bank of Thailand in H1

The Economic Intelligence Center (EIC) of Siam Commercial Bank (SCB) has projected that the Bank of Thailand (BOT) will implement two rate cuts in the first half of the year. The projections stem from economic challenges Thailand is facing.

EIC Expects 50 Basis Point Reduction in Policy Rate

According to SCB EIC’s Chief economist, Somprawin Manprasert, the first rate cut is anticipated at the MPC meeting on April 10, followed by another 25 basis points reduction in the subsequent meeting on June 12. This move is expected to bring the policy rate down to 2% by mid-year.

Potential Impacts of Anticipated Rate Cuts on Thai Economy

These rate cuts could stimulate economic activity by encouraging borrowing and spending, particularly in key sectors like manufacturing, tourism, and exports. The adjustments in policy rate are seen as supporting the central bank’s response to structural changes in the economy while easing the burden on vulnerable firms and households dealing with higher interest rates.

Source : Thailand’s Economic Outlook: SCB EIC Predicts Key Interest Rate Cuts in 2024

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