Skip to main content

Trade war on hold? Inflation falls in Thailand

The cease fire struck almost a week ago between China and the US has lifted hopes that a damaging trade war between the two countries will be averted. But even if the truce beaks down, we don’t think the impact on the region will be too great. We believe the bigger concern for most economies in Asia is that global growth continues to disappoint, dragging down demand for the region’s exports. Meanwhile, falling inflation figures for Thailand released earlier this week have cast doubt on whether the Bank of Thailand (BoT) will raise rates at its next meeting on 19th December. However, given that the BoT’s main concerns have always been about the risks to financial stability stemming from rates being left too low, and the need to build “policy space”, we still think a rate hike is still more likely than not.

Become a client to read more

This is premium content that requires an active Capital Economics subscription to view.

Already have an account?

You may already have access to this premium content as part of a paid subscription.

Sign in to read the content in full or get details of how you can access it

Register for free

Sign up for a free account to gain:

  • Unlock additional content
  • Register for Capital Economics events
  • Receive email updates and economist-curated newsletters
  • Request a free trial of our services


Get access