Thanavath Phonvichai News
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Thailand’s central bank voted to cut interest rates four days after Governor Prasarn Trairatvorakul said no easing was needed, adding to evidence Asia’s outlook has worsened and supporting a government push to shore up growth.
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For Thai Prime Minister Yingluck Shinawatra’s ruling party, keeping the farmers that form its political base happy is more important than retaining the country’s 30-year position as the world’s top rice exporter.
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Thailand’s central bank kept its key interest rate unchanged for a second straight meeting, resisting pressure from the government to resume easing as it guards against the risk of inflation amid rising wage and oil costs.
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Thailand’s consumer confidence fell for a third consecutive month as the nation’s worst political violence in 18 years claimed 27 lives in April.
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Thai economic forecasters said floods that have swamped factories and displaced millions over the past month may crimp gross domestic product growth this year to as little as 0.5 percent if all of Bangkok is inundated.
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Thailand said floods that have killed more than 283 people and hurt exports may last until the month’s end, swamp Bangkok and cut deeper into economic growth.
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Thailand’s consumer confidence rose for the first time in five months in December as the government took steps to aid a recovery from the worst flooding in almost 70 years.
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Thailand’s business community is less concerned about political unrest in the country following the July 3 election, which saw the opposition Pheu Thai party win a majority in parliament, according to a poll.
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Thailand’s consumer confidence rose for the second consecutive month in January as the government increased wages and announced measures to help contain fuel and food costs.
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Thailand’s consumer confidence fell for a second consecutive month in November after the nation’s worst flooding in five decades destroyed crops and the baht’s appreciation restricted exports.
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