MARKET OUTLOOK - Nomura Predicts Another Rate Cut by Thailand's Central Bank This Year

Forex - Nomura economists predict that the Bank of Thailand (BoT) may cut the policy rate by an additional 25 basis points to 2.0% in December, following the rate cut in October. Analysts see a degree of policy uncertainty stemming from the BoT's still "hawkish" stance and estimate the likelihood of a cut at 60%. Factors supporting Nomura's view include declining consumer credit growth, disappointing third-quarter GDP, and persistent inflation below the target. Nomura indicates that inflation remained below the BoT's target levels in October. Last month, inflation rose slightly to 0.83% year-on-year from 0.61% in September, continuing to stay below the BoT's target range of 1-3%.