Rate cut in Thailand, Taiwan applies to join CPTPP

With the economy in the doldrums and deflation worries increasing, we think the Bank of Thailand will cut interest rates by a further 25bp at its meeting on Wednesday (most other analysts are expecting rates to stay on hold at 0.5%). Meanwhile, Taiwan followed China this week by applying to join the CPTPP. Taiwan’s entry would provide much less of a boost to existing members, but it would also be significantly less controversial.