Economics

Thailand's Path to First Rate Hike Since 2011 Is Getting Rockier

Inflation seen staying at low end of central bank target zone
Drop in exports and manufacturing also complicates the outlook

Pedestrians walk along a bridge as passengers ride on a boat at the Amphawa Floating Market in Aphawa, Samut Songkhram Province, Thailand.
Photographer: Dario Pignatelli/Bloomberg

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By Suttinee (Ying) Yuvejwattana

October 30, 2018 at 9:00 PM UTC

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The long wait for a Bank of Thailand interest-rate hike may continue through November’s policy meeting as inflation moderates and the outlook for exports darkens.

While the central bank has signaled the first rate rise since 2011 is getting closer to build policy space for the future, officials have also said their decisions are data-dependent. Figures due Thursday will likely show inflation at the low end of Thailand’s 1 percent to 4 percent target zone, following earlier releases revealing surprise drops in exports and manufacturing.