Oil Shock Tests Bank of Thailand’s Wait-and-See Policy Stance

Thailand’s central bank signaled a wait-and-see monetary policy approach, saying interest-rate cuts are unlikely to be effective against a Middle East-driven oil shock while leaving the door open to tightening if inflation pressures persist.

Energy shocks are primarily supply-driven, limiting the effectiveness of monetary easing, Assistant Governor Chayawadee Chai-Anant said at a briefing Tuesday. More targeted fiscal and regulatory measures would be better suited to support the economy, she said.