Thai Q4 GDP contraction and weaker outlook firm case for rate cut

BANGKOK: Thailand's economy unexpectedly contracted in the fourth quarter of 2023 from the third with policymakers downgrading the outlook for this year, adding to pressure for an interest rate cut as risks grow for the tourism-driven economy.

Prime Minister Srettha Thavisin, who is also the finance minister, has been at loggerheads with the central bank over the direction of monetary policy, repeatedly saying rate cuts will help the economy he describes as being in crisis as it confronts high household debt and China's slowdown.