Thailand

Thailand’s economy grew in the first quarter as private consumption and tourism helped counter weakness in goods exports, but the outlook for the year remains cloudy, the Wall Street Journal reported. Gross domestic product rose 1.5% from a year earlier, compared with the 1.7% expansion seen in the final quarter of 2023, the Office of the National Economic and Social Development Council said on Monday.

Thailand’s new Finance Minister Pichai Chunhavajira urged the central bank to support government policies, signaling pressure may continue on the Bank of Thailand to cut interest rates, Bloomberg News reported. “It’s our duty and responsibility for me and BOT (Bank of Thailand) to work together to push both engines - monetary and fiscal policies in the same direction,” Pichai told reporters on Tuesday in his first remarks as finance chief.

A surprise rate increase by Indonesia’s central bank underlines expectations that the start of monetary policy easing is looking increasingly far off for many Asian central banks, if it is on the horizon at all, the Wall Street Journal reported. As the U.S. Federal Reserve holds off on its own rate cuts and Asian currencies come under pressure, central banks in Asia face a dilemma. Lowering before the Fed does risks adding pressure to already-weak Asian currencies, pushing up prices of imported goods and services and sending inflation rates higher.

Thai retailer Central Group has acquired the landmark KaDeWe property in central Berlin from the insolvent Austrian company Signa in what it said was another step towards buying the group, Reuters reported. Central said in a statement on Friday that it was optimistic about talks to acquire the entire KaDeWe Group, which includes Alsterhaus in Hamburg, and Oberpollinger in Munich. The Thai retailer already holds a 50.1% majority stake in the group.

Thailand's central bank left its key interest rate unchanged for a third straight meeting on Wednesday, resisting repeated calls by the government to lower borrowing costs to help revive Southeast Asia's second-largest economy, Reuters reported. The Bank of Thailand's (BOT) monetary policy committee voted 5-2 to hold the one-day repurchase rate at 2.50%, the highest in more than a decade. It had raised the rate by 200 basis points since August 2022 to curb inflation.

Thai retailer Central Group wants to take over some real estate assets from insolvent Austrian property company Signa, including KaDeWe in Germany and Selfridges in London, Reuters reported. Central Group is interested in Signa's entire luxury group, which also includes Alsterhaus in Hamburg, Oberpollinger in Munich, and Globus in Switzerland, according to a Business Insider report. The report said Central is already substantially invested in Signa's luxury holdings.

Thailand’s central bank faced renewed calls from the government camp to start easing monetary policy, with Prime Minister Srettha Thavisin’s top aide arguing that Southeast Asia’s second-largest economy needed cheaper borrowing costs to spur growth, Bloomberg News reported. The Bank of Thailand’s Monetary Policy Committee has some room to reduce the key rate to provide “immediate relief” to the people as budgetary support was still at least a month away, Prommin Lertsuridej, the secretary-general to Srettha, said Monday.

Thailand’s prime minister pledged to keep up his campaign to pressure the central bank into a rate cut, fueling a buildup of market sentiment that the dispute will result in monetary easing, Bloomberg News reported. “There is plenty of room” to cut the benchmark rate, leaving enough monetary policy space in case of future crisis, Prime Minister Srettha Thavisin told reporters in Bangkok. He cited Thailand’s shrinking economy and negative inflation as evidence of weak business and consumption activity, that’s compelling enough for an off-cycle rate decision.

Thailand’s Prime Minister Srettha Thavisin asked the central bank to urgently hold an unscheduled meeting of its Monetary Policy Committee to cut interest rate, saying the latest data indicated that the nation’s economy was in a crisis, Bloomberg News reported. “I would like to implore the MPC to urgently call a committee meeting to consider reducing interest without waiting for a scheduled meeting,” Srettha posted on X, formerly known as Twitter, late on Monday.

Thailand’s government raised its new borrowing target by 560 billion baht ($15.7 billion) for the current fiscal year to finance budget deficit and new projects, Bloomberg News reported. Under a revised public debt management plan approved by the cabinet on Tuesday, new borrowing for government, state enterprises and other agencies will increase to 754.7 billion baht from 194.4 billion baht cleared by Prime Minister Srettha Thavisin’s government soon after it took power in September, according to an official statement.