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

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