Standard Chartered: Bank of Thailand expected to continue holding interest rates steady in the long term.

United Overseas Bank's senior economist Chua Han Teng stated in a report that given the concerns about stagflation, the Bank of Thailand may continue to maintain its status quo in the long term. Economic growth faces resistance from the Middle East conflict, including the possibility of weakened private consumption and disruptions in the tourism industry. Driven by the sharp rise in fuel prices, the inflation rate soared in April. Chua mentioned that in the event of weakening consumer confidence, higher inflation rates will weaken household spending. The Bank of Thailand is also unlikely to address the supply-side inflation shock in the short term by raising interest rates, as tightening policies would drag down economic growth.