SCB EIC expects MPC to hold rate at 1% until 2027

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The Siam Commercial Bank's Economic Intelligence Center (SCB EIC) assesses that the Monetary Policy Committee (MPC) will maintain the policy rate at 1% throughout this year and is likely to keep it steady until 2027, as Thailand's economy is expected to grow only 2.1% next year and inflationary pressures will gradually ease. SCB EIC views that sufficiently accommodative monetary policy, coupled with targeted financial measures, will be appropriate to support the still-fragile economy. Meanwhile, rate cuts may not address the specific problems of households and SMEs facing tight financial conditions, and rate hikes are less necessary as inflation risks diminish. At its latest meeting yesterday (August 26), the MPC unanimously voted to hold the rate at 1.0%, viewing that level as accommodative and appropriate, despite headline inflation being lower than expected, but with a tendency to rise due to supply-side factors.

Impact on assets 3

Digital Finance & Tokenization▲ · 1 stocks
SCB X Public Company Limited
SCB
± MixedMonetaryrelevance

SCB EIC expects MPC to hold rate at 1% until 2027, which may affect SCB X's net interest margin but is not directly discussed.

Others▲ · 1 stocks
Others▼ · 1 stocks