Thailand set for unchanged rate till end 2012

There is probably little that a rate cut could do to boost growth at this point, says OCBC.

OCBC Treasury Research noted:

We remain of the view that the BOT is likely to keep its rate unchanged at 3.0% for the rest of the year, and the latest string of comments from the BOT Governor suggest that he remains biased towards maintaining a neutral policy as well.

As discussed previously, we forecast 2012 GDP growth at 5.5% yoy and that this is a decent figure within the central bank’s target. There is probably little that a rate cut could do to boost growth at this point, given the fact that most of the drag to the economy has stemmed from the external front.

As it is, the central bank has also indicated that they are not looking to intervene in the FX market just in an order to boost export growth.