06/05/2008
[ECON]Thailand Economics: Rate hike possible but not likely 2008 inflation revised up to 5.4%
Our 2008 inflation forecast is revised up from 4.2% to 5.4%. However, core inflation is expected to peak at less than 3.5% which does not exceed the Bank of Thailand’s inflation target ceiling. We expect headline inflation to fall to 3.5% in 2009. This means that the BoT can refrain from raising interest rates in 2008 and 2009.
02/05/2008
[ECON]Thailand Economics: Economy grows strongly in 1Q Recovery gathers steam in March
Private consumption and investment grew at satisfactory rates of 6.8%YoY and 7.2%YoY, partly due to a low base last year. However, the growth suggests solid recovery in domestic demand as people start to spend. Growth was strong in automobile sales (+40%YoY), motorcycle sales (+17.8%), consumer goods imports (+27%) and capital goods imports (+14.4%). Cement sales is the only indicator that remains weak, falling 8.5%YoY in Mar.
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