Thai Swaps Fall to One-Week Low as GDP Data Boosts Rate-Cut Odds

Thailand’s onshore interest-rate swaps fell to a one-week low after first-quarter economic growth missed analysts’ estimates, fueling speculation the central bank will cut borrowing costs next week.

Southeast Asia’s second-largest economy grew 5.3 percent, official data showed today, compared with a revised 19.1 percent gain in the previous three months and the median forecast in a Bloomberg survey for a 6 percent expansion. The National Economic and Social Development Board scaled back its forecast for 2013 growth to as much as 5.2 percent today, from an earlier projection of 5.5 percent. The Bank of Thailand will review policy on May 29.