Thai Baht: Higher commodities threaten Baht stability – Commerzbank
Commerzbank analysts note that the Bank of Thailand (BoT) is expected to keep its policy rate at 1.0%, seeing it as sufficiently accommodative. USD/THB has consolidated in a 32.90–33.30 range, with rising global commodity prices and foreign outflows posing downside risks for the Baht.
Commerzbank analysts have warned that the Thai Baht (THB) could face instability due to rising global commodity prices and foreign outflows. The Bank of Thailand (BoT) is expected to maintain its policy rate at 1.0% during its next meeting on August 26th, considering it sufficiently accommodative. However, the trade-off between domestic demand and inflation remains challenging.
While domestic growth remains below potential, the BoT anticipates headline inflation to average 2.8% in 2026 and stay above its 1-3% target range for part of the second half of the year before easing in 2027. The current 1.0% rate is deemed sufficiently accommodative by the BoT, indicating limited room for further easing unless domestic activity weakens significantly.
The THB's USD/THB exchange rate has been fluctuating within a 32.90-33.30 range, having fallen from its late-July high of 33.85 and consolidated around the aforementioned range over the past two weeks.
Written by urgent.news from FXStreet's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
This story
This is one outlet's version. Read the fullest account.
