Thai Growth Missing Estimates Raises Pressure for Rate Cut

This has been an ongoing debate since the beginning of this year.  The conspiracy theorist inside thinks that the government just wants cheaper funding for its massive infrastructure plans. However I’d like to believe that the BOT will remain independant and I don’t expect interest rates to decline unless inflation declines for a couple quarters.  

The growth slowdown may give the Bank of Thailand scope to join a global wave of monetary easing, after resisting pressure from the government in recent months to lower borrowing costs and curb inflows that last month drove the baht to a 16-year high. Finance Minister Kittiratt Na-Ranong, who has led calls for lower rates, has said the central bank must cut by more than a quarter of a percentage point or implement capital controls.

Source: Bloomberg

Stocks in the news (amata, bts, pttep, ptt, true) 20.05.13


AMATA gears up for rush of land sales — AMATA said hundreds of land sales are expected to be sealed in the second half of this year, mostly in the car industry. Viboon Kromadit, a director and senior VP said each deal will require hundreds of rai of land, with the largest deal at 400 rai. Amata has set a sales target of 3,000 rai this year. If the deals are closed as expected, its sales will rise by at least 10-20% from 2,800 rai last year. (Bangkok Post, 18/05/13)

Comment: amata, hemraj both benefit from te continued expansion of automotive manufacturers here in thailand


BTS extension fares slashed by five baht — Fares on the On Nut-Bearing skytrain extension route were cut from Bt15 to Bt10 yesterday. Bangkok governor Sukhumbhand Paribatra said the fare reduction was aimed at reducing the financial burden on the public and encourage people to use public transport. (Bangkok Post, 18/05/13)

Continue reading Stocks in the news (amata, bts, pttep, ptt, true) 20.05.13