Thai Central Bank's Decision to Hold Rates Steady

In a widely anticipated move, Thailand's central bank decided to maintain its key interest rate at 2.25% during its final meeting of 2024. This decision comes after a surprise rate cut in October, reflecting the bank's cautious approach to monetary policy adjustments.

Economist Predictions and Market Reactions

Out of 30 economists surveyed by Reuters, all but two predicted the key rate would remain unchanged. The two dissenting forecasts anticipated a 25 basis-point cut. The median forecast among economists suggests a potential 25 basis-point rate cut by mid-2025, indicating a potential softening in the monetary policy stance over the next year.