Krungthai COMPASS expects the MPC to have a chance to cut the policy interest rate next time. In the case of the MPC voting 6 to 1 to maintain the policy interest rate at 2.50% per annum, which is at the same level for the fifth time continuously, because it is assessed that the Thai economy tends to expand driven by the tourism sector and domestic demand, while the general inflation rate tends to adjust down more than expected. The medium-term inflation forecast remains in line with the target framework. Krungthai COMPASS assesses that the MPC still has a chance to cut the policy interest rate in the future because in 2H67, the Thai economy may face additional downside risks from private consumption that tends to weaken following the decline in consumer confidence and private investment that weakens from negative signals of capital goods imports, while the market hit of Chinese products affects domestic production. Meanwhile, the headline inflation rate that is lower than the MPC's assessment may open add itional room for further adjustments to the policy interest rate in the future.- Source: Thai News Agency