Thailand's robust consumer spending, driven by tourism and strong economic activities in H1 2023, has contributed to the economy. However, setting up a coalition government and crafting the 2023 budget could be complex and delayed. The policy outlook hinges on achieving a balanced economy in the long run, keeping inflation within a sustainable range of 1-3%, and supporting consistent GDP growth of 3-4%. The BoT aims to avoid abrupt changes in monetary policy as it adapts to Thailand's unique economic context.

James McCormack, Managing Director and Head of Sovereign Ratings at Fitch Ratings, emphasized that a coalition government may introduce various policies, potentially slowing down the budget approval process. While these measures could provide short-term economic support, they may also increase public debt if they don't sustain GDP growth.

The evolving policy landscape will require a delicate balance between immediate economic support and long-term financial stability. The outcome will depend on the government's ability to maintain consistent economic growth while managing public debt effectively.