The bank forecasts that the new government likely to concentrate its spending in 1H2024, before the rules change on electing a Premier. Fiscal concerns to lead to continued curve steepening. The THB is reacting well to easing uncertainty, although there are other risks to its recovery.

It is also expected that the Thai economy will expand further, with an expected GDP growth of 4.3% and headline inflation to return to an average of 2.5%