Markets price the Bank of Thailand to keep the policy rate at 1.00% at
Wednesday’s meeting, a fourth consecutive pause. The BOT is likely to regard
recent inflationary pressure as temporary and supply-driven and to maintain an
accomodative stance to support uneven growth. Headline inflation rose to 2.82%
YoY in September, inside the BOT’s 1–3% target range. Growth is projected near
2.3% this year but the outlook is under pressure; recent floods in Bangkok and
Surrounding areas may dent output more than previously expected.
