BNY relays that the Bank of Thailand sees no need for a special MPC meeting, as the Baht has weakened only modestly during the U.S.–Iran conflict. The central bank cites strong external buffers and notes limited foreign selling, with signs of inflows returning to long-term bonds and equities. Indonesia’s emergency hike contrasts with Thailand’s more patient stance.

Stable Baht lets BOT stay patient

"The Bank of Thailand said no special Monetary Policy Committee meeting is needed as the baht has moved steadily despite pressure from the U.S.–Iran conflict."

"BOT spokesperson Chayawadee Chai-anant said the currency has weakened only slightly, while Thailand’s external position remains strong enough to absorb global market volatility."

"The baht has fallen about 5.4% since the conflict began, less than many regional currencies, and foreign investors have sold only around USD 1.3bn of Thai assets, with signs of inflows returning to long term bonds and equities."

"The BOT stressed that international reserves, financial stability, and the current account continue to support the economy."

"Indonesia’s central bank hiked rates by 25bp in an emergency meeting and is expected to hike again in their scheduled meeting next week."

(This article was created with the help of an Artificial Intelligence tool and reviewed by an editor.)