Briefs

THE BANK of Thailand is expected to keep the policy interest rate at 1.50 per cent at today’s meeting.
In a research note, DBS Group said that as the economy started to recover, a slight cut – such as 25 basis points – would not lift sentiment at all.
Maybank Kim Eng Securities (Thailand) earlier believed the central bank would raise the policy rate in the fourth quarter, to stem portfolio capital outflows likely from the US Federal Reserve’s monetary tightening. That stance has changed: whether the increase will happen depends on the actual impact of Brexit on the global economy.
For now, government spending is more supportive to economic growth than monetary policy, it said. Moreover, inflation is picking up. The Consumer Price Index in July was up 0.1 per cent year on year.
Yesterday, Australia’s central bank cut the key interest rate by 25 basis points to 1.50 per cent, a record low, to boost the economy.

TRADE, SERVICE SENTIMENT
INDEX DECLINES IN JUNE
June’s Trade and Service Sentiment Index (TSSI) dropped to 89.6 from 97.4 in May, on declines in profits and sales, said Salinee Wangtal, director-general of the Office of Small and Medium Enterprises Promotion (Osmep).
However, the index for wholesale agricultural products rose on easing impacts from drought, she said.
Sharp declines were seen in the indices for wholesale consumer products, car and motorcycle retail, petrol stations, transport businesses and recreation due to consumers’ cautious spending, tourism’s low season and concerns over risks to the global economy as a result of Brexit.
The three-month TSSI continued to stay above 100, reflecting confidence for improvement in the business situation, climbing to 106.2 in June from 105.8 in May, with sharp increases in tourism and transportation businesses in particular.

MRTA APPROVES BUDGET FOR
TAO POON-BANG SUE LINK
The board of the Mass Rapid Transit Authority of Thailand yesterday approved a budget of Bt693 million to set up the rail-system link between Tao Poon and Bang Sue.
 The board also approved signing a contract with Bangkok Expressway and Metro to set up the electric system and operate this extended route, MRTA governor Peerayudh Singpatanakul said.