Prayuth to approve building and land tax in cabinet meeting tomorrow, according to a source. (Daily News, 30/5/16)
Government Housing Bank and Government Saving Bank to discuss with Ministry of Finance regarding loan approvals since the banks need to reject about 60% of loan applications in order to adhere to the ministry’s policy. (Thai Rath, 30/5/16)
BoT: Inflation rate on target – The consumer price index edged up by 0.46% in May from a year earlier after rising 0.07% in April, its first annual gain in 16 months. The core inflation rate, which excludes raw food and energy prices, was registered at 0.78% in May, unchanged from April’s figure. (Bangkok Post, 2/6/16)
State to allot B5bn for SEZ — The government plans to invest 5 billion baht on building a special economic zone (SEZ) in Sa Kaeo to serve small and medium-sized enterprise (SME) operators, says Industry Minister Atchaka Sibunruang. (Bangkok Post, 3/6/16)
Yellen: Rate hike probably appropriate in the coming months — Federal Reserve Chair Janet Yellen said Friday an interest rate hike is “probably” appropriate in the coming months if economic data improve. “It’s appropriate, and I’ve said this in the past, I think for the Fed to gradually and cautiously increase our overnight interest rate over time and probably in the coming months, such a move would be appropriate,” she said in response to a question at Harvard’s Radcliffe Institute for Advanced Study. (CNBC, 30/5/16)
Japan May Delay Sales Tax Hike Until 2019 — Reports from Japan say that Prime Minister Shinzo Abe wants to postpone next April’s planned sales tax hike for at least two years. He’ll propose another stimulus package instead to give the economy a shot in the arm. Bloomberg’s Yvonne Man reports on “First Up.” (Bloomberg, 30/5/16)
Chinese industrial profits are rising — Profits at Chinese industrial firms increase by 4.2% to 502 billion yuan ($US76.6 billion) in April compared to the levels of a year earlier, according to data released by China’s National Bureau of Statistics (NBS) on Friday. (Business Insider, 30/5/16)
China’s manufacturing sector growth steady in May – China’s manufacturing sector expansion remained steady in May, the third month of expansion in a row, official data showed on Wednesday. The purchasing managers’ index (PMI) for May came in at 50.1, the same as in April, according to the National Bureau of Statistics (NBS) and the China Federation of Logistics and Purchasing. The Caixin PMI declined by 0.2 to a three-month low of 49.2 in May. Meanwhile, the official PMI for the non-manufacturing sector came in at 53.1 in May, down from 53.5 in April and 53.8 in March. Although the official non-manufacturing PMI was weaker due to financial market volatility, construction was stronger over the month. (Xinhua, 2/6/16)
ECB raises growth, inflation forecasts but warns of risks — The bank now sees growth of 1.6 percent for 2016, up from a 1.4 percent forecast in March. It left its growth forecast for 2017 unchanged and trimmed its forecast for 2018 to 1.8 percent. Inflation is seen at 0.2 percent compared to a previous forecast of 0.1 percent. Inflation is expected to pick up in the second half of 2016 and recover in 2017 and 2018, ECB President Mario Draghi said at a press conference. (CNBC, 3/6/16)
ECB keeps rates unchanged at record low as expected — The European Central Bank left interest rates unchanged as expected on Thursday, holding them at record lows as it prints money to lift the economy and raise inflation. The decision to leave rates on hold was unanimously expected by the 65 analysts polled by Reuters after the ECB cut its deposit rate deeper into negative territory in March, decided to buy corporate bonds and unveiled a new ultra-cheap corporate loan scheme. (Reuters, 3/6/16)
