Thai Political Turmoil Threatens Growth, Lifts Rate Cut Bets

Former Thailand prime minister Paetongtarn Shinawatra speaks to members of the media following her dismissal by the Constitutional Court at the Government House in Bangkok on Aug. 29.

Photographer: Valeria Mongelli/Bloomberg

With Thailand’s major political parties vying to form a new government — which may last only a few months — economists see further risks to economic growth and rising odds of steeper interest rate cuts.

The country was thrown into political turmoil last week after the Constitutional Court dismissed Paetongtarn Shinawatra as prime minister for ethical misconduct. The ruling has triggered a race between two rival blocs to anoint a new premier, with both seeking support from a party demanding fresh elections within months.