0902 GMT - The suspension of Thai Prime Minister Paetongtarn Shinawatra by the country's Constitutional Court poses further downside risk to a growth outlook that is already mired in U.S. tariff uncertainty, OCBC economists say in a note. The court suspended Shinawatra from office pending deliberations over her handling of a border crisis with neighboring Cambodia. "The immediate aftermath of these court decisions is usually heightened uncertainty regarding policy continuity," the OCBC economists say. The government's sustainability and its associated policies have to be addressed sooner rather than later, they add. If the uncertainty continues, there is a case for the Bank of Thailand to deliver further rate cuts. OCBC's baseline is for another 25bp rate cut in 4Q. However, if political uncertainty continues, OCBC doesn't rule out an additional 50 bps of cuts. (amanda.lee@wsj.com)

(END) Dow Jones Newswires

July 01, 2025 05:02 ET (09:02 GMT)

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