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How long can Thailand’s central bank swim against the tide?

13 Sept 16:36 Key points summarised by AI

Thailand's central bank (BOT) faces mounting pressure to raise interest rates as domestic inflation soars to a 13-year high and the US Federal Reserve aggressively hikes its rates.
The US Fed's rate hikes are strengthening the dollar, causing the Thai baht to weaken significantly, which inflates import costs and complicates Thailand's independent monetary policy.
A split vote within the BOT's Monetary Policy Committee strongly indicates an upcoming interest rate hike, likely in August, to combat inflation and stabilize the depreciating baht.
While a rate hike aims to bolster the baht and benefit savers, it will burden borrowers with higher loan costs and could impact various investment sectors.

Today 14:58 Key points summarised by AI

Thailand's government will launch the "Chainat-Pasak-Gulf" water diversion canal project in fiscal year 2027, a seven-year mega-infrastructure initiative.
This permanent structural solution aims to mitigate recurrent central plains flooding by diverting water from the Chao Phraya River directly into the Gulf of Thailand, significantly reducing flow to major cities like Ayutthaya and Bangkok.
Prime Minister Anutin Charnvirakul justifies the long-term investment as a means to reduce future damages and fiscal burdens, contrasting it with the 40-50 billion baht spent annually on short-term flood relief.
Concurrently, the Prime Minister instructed officials to expand drainage capacity into the Tha Chin River and swiftly remove water hyacinths to improve immediate flood management.