Halister News

(Bloomberg) -- Thailand’s central bank is forecast to leave benchmark rate unchanged given an economy on the mend and a deflation print that is expected to turn into inflation over the coming months, Bloomberg strategist David Finnerty writes.

• Bank of Thailand will retain policy rate at 1.50%, according to 19 of 20 economists in Bloomberg survey; one expects a 25 bps cut; decision due tomorrow at 2:30 pm local time
• Economy shows signs of gradual, though uneven, recovery, central bank Governor Veerathai said earlier this month
• Exports rose 10% in February from year earlier based on preliminary data, Finance Minister Apisak Tantivorawong said yesterday; government plans issue measures to boost consumption during Songkran holiday that falls in mid-April
• In Jan., government approved a plan to spend 35b ($980m) on infrastructure in villages to boost economic growth
• Headline inflation is likely turn positive during the first half of 2016, the central bank said last month
• Feb. CPI was -0.50% y/y versus -0.53% in Jan.; core CPI increased to 0.68% from 0.59%
• NOTE: David Finnerty is an FX strategist who writes for Bloomberg. The observations he makes are his own and are not intended as investment advice.