Thailand’s economy grew a stronger-than-expected 1.2 per cent in the third quarter from the previous three months, which most economists think will lead the central bank to keep its policy rate on hold until 2013.
Third-quarter growth was slower than April-June’s revised 2.8 per cent, as the weakening global economy hit exports and production. But the latest pace was higher than the 0.9 per cent quarterly gain forecast in a Reuters poll.
The Bank of Thailand’s policy committee, which surprisingly cut rates in October, holds its last meeting of the year on Nov. 28.
“We believe that policy rate will remain on an easing bias, although we do not expect the BOT to cut rate by another 25 basis points until the first half of 2013,” said Usara Wilaipich, senior economist at Standard Chartered Bank in Bangkok.
The National Economic and Social Development Board (NESDB) on Monday also said that gross domestic product in the third quarter expanded 3.0 per cent from a year earlier, almost matching the 3.1 per cent forecast by the polled economists, and compared with revised annual growth of 4.4 per cent in the second quarter.
Like in many of Southeast Asian nations, strong domestic demand and tourism have helped shore up Thailand’s economy even as exports and industrial output slumped.