Divergent Asian central bank policies see Thailand hold rates while South Korea and the Philippines prepare 25bps hikes this week.
The Bank of Thailand is set to maintain its policy rate at 1.00% for a third consecutive meeting, leaving real yields negative and weighing on the Thai Baht. Analysts cite weak economic conditions as the primary reason for the hold, contrasting with regional peers tightening policy.
The Bank of Korea is expected to raise rates by 25bps to 3.00% on Thursday, marking a second consecutive hike. Growth and inflation exceeding targets support the move, though a minority of analysts forecast no change. Meanwhile, the Bangko Sentral ng Pilipinas is poised for a third straight 25bps hike to 5.00%, aiming to curb PHP weakness after USD/PHP hit record highs.
Divergent monetary paths reflect varying economic pressures, with Thailand’s negative real rates contrasting sharply with Korea’s and the Philippines’ efforts to combat inflation and currency depreciation.