0439 GMT - The Bank of Thailand might need to cut its policy rate deeper than expected to contain the country's deflation risks, UOB economists write in a research note. Thailand's consumer prices have been contracting for six straight months. Deflation risks are increasing not only because of the negative prints for consumer prices, they say. The more salient threat is a financial, balance-sheet driven deflation, given factors including weakening bank credit and elevated private leverage. UOB expects BOT to deliver a 25bp rate cut each in December 2025 and 1Q 2026. (amanda.lee@wsj.com)
(END) Dow Jones Newswires
October 31, 2025 00:39 ET (04:39 GMT)
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