The Bank of Thailand will hold the one-day bond repurchase rate at 1.25 percent, according to all 26 economists surveyed by Bloomberg News. The decision is due at 2:30 p.m. in Bangkok.
“It’s still uncertain whether the recovery will be sustained,” said Somprawin Manprasert, an economist at Tisco Securities Co. in Bangkok. “There is no reason for the central bank to come up with an exit strategy anytime soon. The threat of inflation is still not significant.”
Central bank Governor Tarisa Watanagase said Oct. 12 the nation’s economic recovery is “fragile” and accommodative monetary policy is still necessary, suggesting she won’t follow Australia in raising borrowing costs. Recurring political protests have weighed on Thailand’s economy as the government attempts to revive growth by boosting spending.