Economics

Worst Thai Drought in a Decade Adds Pressure for a Rate Cut

  • Nomura says coordinated easing needed if dry spell persists
  • Poor rain adding to risks such as impact of U.S.-China tension
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The drought in Thailand threatens to exacerbate a sharp slowdown in economic growth and intensify pressure on the central bank to loosen monetary policy.

The dry conditions are the worst in a decade, and farming heartlands in the northeastern region are among the hardest hit, according to the Meteorological Department.