Thailand: Massive growth forecast downgrade – ANZ

Today’s rate hold decision follows a 25bp rate cut at an unscheduled meeting on 20 March as well as measures jointly announced by the BoT, Finance Ministry and Securities and Exchange Commission on 22 March aimed at stabilizing financial markets, economists at ANZ Research brief.

Key quotes

“The Bank of Thailand (BoT) today kept its policy rate unchanged at 0.75%. The decision was not unanimous, with two members voting to cut the rate to 0.50%.” 

“The BoT today slashed its 2020 growth projection massively, from 2.8% to -5.3%.”

“We think a further rate cut to 0.5% is likely, while anything more will be difficult for banks to follow through.”