Thai Bonds Decline After Central Bank Says No Need to Cut Rates
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Thailand’s government bonds fell, pushing the 10-year yield to a two-week high, after central bank Governor Prasarn Trairatvorakul said there is no need to cut interest rates. The baht was little changed.
Inflation remains “benign” and the economy will grow 5.7 percent this year as domestic demand counters a slowdown in exports, Prasarn said Oct. 13. Expansion was 0.1 percent in 2011 as the nation was affected by the worst flooding in almost 70 years. The Bank of Thailand will keep its benchmark rate at 3 percent tomorrow, according to 20 of 23 economists surveyed by Bloomberg, with three predicting a 25 basis point cut.