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Government continues to pressure BOT to lower interest rate

14 Sept 02:20 Key points summarised by AI

Thailand's Finance Minister is actively pressing the Bank of Thailand (BOT) to consider lowering its 2.50% interest rate, citing concerns over household debt and the need for economic stimulus.
Initially, global central bank rate cuts led to capital inflows and a strong baht, prompting calls for the BOT to reduce rates to benefit new borrowers and support exports.
However, recent strong US economic data and signals from the US Federal Reserve have strengthened the dollar and weakened the baht, providing the BOT more flexibility and easing pressure for an immediate rate cut.
External factors like Middle East tensions, which could spike oil prices and hinder global rate cuts, and a weaker Japanese yen, impacting Thai tourism and rice exports, further complicate the BOT's monetary policy decisions.

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.