UOB Sees Extended BoT Pause as Thai CPI Misses on Fuel Slide

Thailand’s headline inflation undershot expectations in July, as lower fuel prices dragged the consumer price index lower. Core inflation, which strips out food and energy, showed a modest uptick, according to UOB Global Economics & Markets Research.

Economists Enrico Tanuwidjaja and Sathit Talaengsatya highlighted that supply-side factors remain the main driver, reducing pressure on the central bank to tighten.

With inflation well within the target range and the economy on a gradual recovery, UOB expects the Bank of Thailand to keep its policy rate unchanged for a prolonged period.