CIMBT sees two rate cuts within 12 months
published : 2 Jul 2019 at 15:49
CIMB Thai (CIMBT) forecasts the central bank to ease monetary policy by cutting the benchmark rate once in December and once in the first half of next year in a bid to boost economic growth and curb hot-money inflows.
The rate-setters are expected to trim the policy rate by 25 basis points in December to 1.50% and another 25 basis points to a record low of 1.25% in the first six months of 2020, said Amonthep Chawla, head of research at CIMBT.
“Monetary policy should take the lead, not fiscal policy, while the new government’s formation is not completed,” he said.
Meanwhile, CIMBT downgraded its 2019 economic growth outlook to 3.3% from the 3.7% seen previously.
The research unit also predicted that the country’s full-year exports will fall 1.2%.