Populist budget close to legal limit. Little room remains in the budget for the government to spend further on populist policies through state-owned financial institutions, as populist spending is nearing the cap of 30% of the annual budget, says an informed source at the Finance Ministry. (Bangkok Post, 14/08/18)

Ageing Society may slow GDP. BoT asks employers to extend the retirement age and support employee learning. The BoT’s Macroeconomics Department says the aging society and early retirement will shrink the labor force in the market and slow Thailand’s economic growth. It says that over the last decade, Thailand’s GDP grew by 5% a year but if the labor force continues to decrease, it will reduce GDP growth to 3.5% within 10 years. Even though Thailand can access labor from neighboring countries, if these countries develop, their citizens will return home to work. (Matichon, 16/08/18)

Bank fee income shrinks. Thai commercial banks witnessed a first-time contraction of 11.2% in feebased income from fund transfers in 2Q18, due to waived fees on digital banking transactions. (Bangkok Post, 16/8/18)

Big rise in price of CNG. The pump price of compressed natural gas will jump 37% on Thursday evening, to bring it in line with the global oil price, PTT announced on Thursday. PTT president and chief executive Tevin Vongvanich said the retail price of CNG, marketed as NGV, will rise to Bt14.58/Kg “this evening”. He did not specify the exact time. (Bangkok Post, 16/08/18)

Turkish lira pulls back from record low, markets rattled. Turkey’s lira pulled back from a record low of 7.24 to the dollar on Monday after the central bank pledged to provide liquidity and cut reserve requirements for Turkish banks, but its meltdown continued to rattle global markets. The currency has lost more than 40% against the dollar this year, largely over worries about President Tayyip Erdogan’s influence over the economy, his repeated calls for lower interest rates, and worsening ties with the United States. (Reuters, 13/08/18)

Saudi cuts oil output as OPEC points to 2019 surplus. OPEC on Monday forecast lower demand for its crude next year as rivals pump more and said top oil exporter Saudi Arabia, eager to avoid a return of oversupply, had cut production.  (Reuters, 13/08/18)

National Bureau of Statistics of China (NBS) reported Industrial production growth of 6%YoY as same as growth in June. First seven months of industry production grew 6.6%YoY, slowed from the first six months growth of 6.7%YoY. Retail sales in July grew 8.8%YoY, slowed from the growth of 9%YoY in June. First seven month of retail sales grew 9.3%YoY to CNY21trn (US$3trn), slowed from the first 1H18 growth of 9.4%YoY.  (IQ Biz, 14/08/18)

Indian rupee hits record low of 70 to the dollar. The Indian rupee hit a record low of 70 to the dollar on Tuesday as emerging market currencies are sold off by investors spooked by the Turkish financial crisis. (Bangkok Post, 14/08/18)

Erdogan says Turkey will boycott U.S. electronics, lira steadies. President Tayyip Erdogan said on Tuesday that Turkey would boycott electronic products from the United States, retaliating in a row with Washington that has helped drive the lira to record lows.  (Reuters, 14/08/18)

Indonesia rates raised amid Turkey turmoil. Indonesia’s central bank raised interest rates yesterday in a bid to shield the slumping rupiah from a sell-off in emerging market currencies as Turkey’s financial crisis roils global markets. Bank Indonesia raised its benchmark rate to 5.5% from 5.25%, its fourth hike since May, after the rupiah this week dropped to its lowest level against the US dollar since 2015. (The Nation, 16/08/18)