VAT rate kept at time-honoured 7% to help recovery. The cabinet yesterday approved the extension of the 7% value-added tax (VAT) rate for another year, saying a hike could derail the economic recovery. (Bangkok Post, 15/8/2017)
Thai–Chinese railways could be signed soon. The Ministry of Transport is going to propose the construction structure of the Thai–Chinese railways. If this is approved, contracts will be signed immediately. (Thun Hoon, 16/8/2017)
Sugar tax to be proposed to cabinet today. The Ministry of Finance is going to propose a sugar tax on 111 items (sugar drinks, green tea, fruit drinks, power drinks), ranging from Bt0.1–1. The rationale behind this is the harm to health from sugar. (Thai Rath, 15/8/2017)
Three dual-track rail projects to be auctioned on August 31, September 1 and 4. ITD, CK, STEC, UNIQ, and PLE plan to join. (Khao Hoon, 15/8/2017)
Panel keeps rate, citing flimsy demand. As expected, the Bank of Thailand’s Monetary Policy Committee (MPC) kept its policy rate unchanged yesterday, saying the rate remains accommodative for economic recovery because domestic demand is not sufficiently broad-based. (Bangkok Post, 16/8/17)
BOT expects Bt7.5bn for flood damages nationwide. BOT is going to revise the Thai 2017 and 2018 GDP growth by factoring flood damage. It expects low impact to economy due to small proportion of agricultural sector. (Daily News, 16/8/17)
No unusual speculation seen in Thai baht – c.bank chief. Thailand’s central bank has not found any evidence of unusual speculation in the baht, the governor said on Thursday, as the currency hovered at more than two-year highs against the U.S. dollar. The baht’s strength has been driven by a weaker dollar, fund inflows and the country’s current account surplus, Bank of Thailand Governor Veerathai Santiprabhob told reporters. (Reuters, 18/8/2017)
US weekly jobless claims total 232,000 vs 240,000 estimate. The number of Americans filing for unemployment benefits fell to near a six-month low last week, pointing to a further tightening in the labor market that could encourage the Federal Reserve to lay out a plan to start unwinding its massive bond portfolio. Labor market strength was corroborated by other data on Thursday showing manufacturers in the mid-Atlantic region sharply increased hours for workers in August amid a jump in new orders and unfilled orders. (CNBC, 18/8/2017)
Fed minutes: Central bank split over path of rate hikes. A fissure appears to be developing at the Federal Reserve over when to raise interest rates: One side is preaching caution in a lowinflation environment while another worries over the price of delaying. The divide appeared in minutes released from the Federal Open Market Committee’s July meeting, when central bank policymakers voted to hold the target rate to a range of 1 percent to 1.25 percent. The summary portrays views that inflation ultimately will get to the Fed’s 2 percent target but is clearly not there yet. (CNBC, 16/8/17)
China industrial output, retail sales, fixed asset investment all miss expectations. China reported industrial output for the month of July rose 6.4 percent on-year, missing expectations. Market watchers are keeping their eyes on the health of the world’s second-largest economy ahead of a key Communist Party Congress in the fall where a leadership reshuffle is expected. Analysts were expecting a rise of 7.2 percent against a 7.6 percent expansion in June for the country’s value-added industrial output. (CNBC, 15/8/2017)
