Thailand's growth was lower than analysts' expectations in the first quarter of the year. And an increase of "only" 5,3% in March, compared to the 2012 quarter, could push the central bank to cut interest rates. After the announcement revealing a lower-than-expected 6% expansion, Finance Minister Kittiratt Na-Ranong said monetary authorities should cut at least 25 points or implement capital controls after inflows from overseas took the baht to a 16-year high last month.
The Bank of Thailand cut its benchmark last October, before adopting a wait-and-see stance, citing possible risks to the country's financial stability. Last month the central bank raised its GDP estimates to 5,1% and cut its inflation forecasts to 2,7%.
On yesterday's news the baht slipped by 0,1% to 29.89 against the dollar at 9.32 yesterday in Bangkok. It contracted nearly 4% from a high of 28.56 in April, when it reached its highest since 1997. It is still Asia's strongest currency, according to data provided by Bloomberg.
http://www.bangkokpost.com/business/news/350942/thailand-grows-more-slowly-than-estimated-raising-rate-cut-pressure
