Thai politics upended, central banks turn dovish

The nomination of Princess Ubolratana Rajakanya Sirivadhana Varnavadi (sister of the current king) as a prime ministerial candidate in Thailand’s upcoming general election, has completely changed the political landscape of the country. There is clearly a great deal of uncertainty over how things will play out. Victory for the princess could potentially bring together the different factions of Thai society, paving the way for a period of political stability. Alternatively, it could lead to a postponement of the election, leading to a further period of uncertainty. Meanwhile, Asian central banks are sounding increasingly more dovish. India cut interest rates this week, and we expect the Philippines and Malaysia to follow suit over the coming months.