Asian CBs to keep key rates unchanged – BBH

In view of analysts at BBH, both the BI and BoT are expected to refrain from moving on rates later in the week.

Key Quotes

“Bank of Thailand meets Wednesday and is expected to keep rates steady at 1.5%.  Inflation was 0.7% y/y in January, below the 1-4% target range.  The economy is fairly robust but we do not think the central bank is in any hurry to hike rates”.

“Bank Indonesia meets Thursday and is expected to keep rates steady at 4.25%.  CPI rose 3.3% y/y in January, which is near the bottom of the 3-5% target range.  We see little reason for the central bank to hike anytime soon.  Indonesia also reports January trade data that same day.  Exports are expected to rise 6.0% y/y and imports by 16.2% y/y”.