MPC meeting, October 16, 2024: Policy rate likely to be left unchanged, but there may be signals of a rate cut in the near future (Business Brief No.4089 Full Ed.)

MPC meeting, October 16, 2024: Policy rate will likely be kept unchanged, but there may be signals of a rate cut in the near future  

• It is expected that the MPC may have a non-unanimous decision to maintain the policy rate at 2.50 percent during its meeting slated for October 16, 2024.
• However, it is anticipated that the MPC will adopt a more accommodative monetary policy, with signals of a rate cut in the future. KResearch views that the MPC may begin cutting the policy rate as early as December 2024, amid the fragile recovery of the Thai economy, low inflationary pressures, and the easing monetary policies of major central banks.
• The MPC may release its economic growth and inflation forecasts at the upcoming meeting. KResearch expects that the Bank of Thailand will keep its 2024 economic growth and inflation forecasts intact. If not, there might be slight changes and a downward revision of its 2025 economic growth forecast from the prior estimate of 3.0 percent, given the increased risks.