BoT Holds 1% Rate as USD/THB Double Top Signals Baht Reversal Risk
OCBC analysts report that Thailand's central bank held rates at 1%, upgraded growth forecasts, and flagged inflation risks. They expect no short-term changes but a 50bp hike in 1H27.
The Bank of Thailand has kept its policy rate at 1% as reported by OCBC analysts Sim Moh Siong and Christopher Wong. This decision was made in a backdrop of upgraded growth forecasts for the years 2026 and 2027, fueled by enhanced exports and investment in the AI sector. Despite this optimism, the BoT has expressed caution about inflation risks due to rising oil prices and potential impacts of El Niño.
The Thai Baht (THB) is showing a double-top pattern in the USD/THB pair, with key support at 33.62 and resistance near 33.85/90. This suggests that the Baht may face a reversal risk against the US Dollar. The analysts predict that the BoT will likely hold the current rate through the upcoming December Monetary Policy Committee meeting, while monitoring any shifts towards a more hawkish stance.
However, they remain cautious about the near-term trajectory of the THB due to potential external economic influences, such as the volatility of energy prices and stabilizing commodities like gold.
Written by urgent.news from Thailand Business News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
