Thailand's Central Bank Likely to Maintain Interest Rates Amid Political Uncertainty

Thailand's central bank is expected to keep its policy interest rate unchanged later this month due to political uncertainties, according to Jin10. Barclays economists highlighted in a report that the upcoming February 8 election may not result in any party securing a simple majority, shifting post-election focus to the formation of a governing coalition. Barclays noted that clarity on the election outcome might take time. Policymakers seem to believe that increasing political uncertainty could hinder the effectiveness of interest rate cuts. However, Barclays acknowledged the risk that weaker-than-expected fourth-quarter GDP data might still prompt the central bank to consider a rate cut.