Household debt up sharply: Reckless policy and slow growth at fault. Average household debt in the year to date has risen by 20.2%, the highest growth in nine years, according to a survey by the University of the Thai Chamber of Commerce (UTCC). (Bangkok Post, 16/9/16)
BoT watch on foreign bondholders. The Bank of Thailand will require bond custodians to provide information regarding non-resident holders who are end beneficiaries of bonds issued in Thailand. End. (Bangkok Post, 16/9/16)
Resignation may delay village broadband scheme. THE INFORMATION and Communications Technology Ministry’s plan to provide free broadband Internet access in 30,000 villages nationwide is expected to be further delayed, after the resignation of Minister Uttama Savanayana on Monday. (The Nation, 14/9/16)
VAT due for year-long extension. An extension of the 7% value-added tax (VAT) rate for another year will go before the cabinet today, says the head of the Revenue Department.The 7% tax rate is set to expire on Sept 30, said director-general Prasong Poontaneat. VAT was first introduced in 1992 at a rate of 10%, but was immediately slashed to 7% at the request of businesses. The rate has been kept at 7% ever since. (Bangkok Post, 13/9/16)
Increasingly risky to delay US rate hike, Fed’s Rosengren says. The Federal Reserve, long hesitant to raise U.S. interest rates, increasingly faces risks if it waits too much longer so a gradual policy tightening is likely appropriate, a top Fed official said on Friday. In another sign that a U.S. rate hike is approaching, Boston Fed President Eric Rosengren said “risks to the forecast are becoming increasingly two-sided.” That means that while a slowdown overseas remains a concern, the U.S. economy has proven resilient and could even overheat if Fed policy remains unchanged for too much longer, he said. (CNBC, 9/9/16)
China’s Aug inflation trends point to stabilizing economy. China’s consumer price inflation slowed to its weakest pace in almost a year in August, pulled down by abating food costs, although an encouraging moderation in producer price deflation added to growing evidence of a steadying economy. The consumer price index (CPI) rose 1.3 percent in August from a year earlier, compared with a 1.8 percent increase in July, the National Bureau of Statistics said on Friday. (Reuters, 9/9/16)
Bank of England keeps rates on hold. The Bank of England met on Thursday and left interest rates and its bond-buying program unchanged after a unanimous vote.The central bank raised its third-quarter growth forecast to 0.3 percent quarter-on-quarter from a previous estimate of 0.1 percent. It also said inflation would reach the 2 percent target in the first half of 2017. This follows a stream of better-than-expected economic data for August that suggests the hit from the Brexit vote in June may have been short-term. (CNBC, 16/9/16)
UK retail sales shrug off Brexit vote. UK retail sales were stronger than expected in August, suggesting consumer confidence has held up in the wake of the Brexit vote. Sales volumes fell by just 0.2% last month, the Office for National Statistics said, while sales were up 6.2% from August last year. The ONS said the underlying pattern for the retail sector was “solid growth”. “Overall the figures do not suggest any major fall in post-referendum consumer confidence,” it said.
(CNBC, 16/9/16)
Chinese industrial production 6.3% vs. 6.1% forecast. Industrial production in China rose more-than-expected last month, official data showed on Tuesday. In a report, National Bureau of Statistics of China said that Chinese Industrial Production rose to 6.3%, from 6.0% in the preceding month. Analysts had expected Chinese Industrial Production to rise to 6.1% last month. (Investing, 14/9/16)
Fed’s Brainard warns against moving too quickly on rate hikes.- Economic progress continues in the U.S., but its central bank would be wise to continue keeping policy loose, Fed Governor Lael Brainard said in a closely watched speech Monday. Amid market concerns that the Fed was about to resume its rate-hiking cycle, Brainard instead offered cautionary tones against moving too fast. In particular, she remains concerned about the impact that global difficulties will have on the U.S. economy. (CNBC, 13/9/16)
