According to Jinshi, Eugene Tan, deputy economist at Moody's Analytics, said the Bank of Thailand may cut its key policy rate by 25 basis points at its meeting on Wednesday. Tan pointed out that economic growth is still below potential, and the slowdown in consumption and contraction in private investment in the June quarter may cause economic growth to lose momentum further.
In addition, the decline in industrial production in August also highlighted that the manufacturing sector is struggling to recover. Tan believes that cutting interest rates to stimulate demand would be an appropriate response to the latest economic data.