15 Aug 2025 | News & Feature

TFP W33 2025: Questions about Momentum

  • Several real sector indicators for July suggest that growth momentum could carry over into the third quarter, despite risks from the economic slowdown in advanced economies.
  • Market sentiment towards an increasingly dovish Fed eases the pressure on BI to maintain its accommodative monetary policy.
  • The transmission of policy rate cuts and broad money growth to a recovery in productive credit occurs with a lag of 2-3 quarters, with a more gradual pass-through for investment credit.