Thai central bank says cutting policy rate may not have much impact

 

 

BANGKOK (Reuters) - Thailand's real interest rates are low compared with those of its regional peers, so cutting the benchmark rate may not have much impact, the central bank said on Wednesday.

 

The central bank also said in a statement that it is worried about a strong baht and is closely monitoring it.

 

The baht traded at 30.90 per U.S. dollar at 0306 GMT. It has gained 5.4% against the greenback this year, making it the top performer in Asia.

 

(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Kim Coghill)

 

-- © Copyright Reuters 2019-07-17

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The central bank also said in a statement that it is worried about a strong baht and is closely monitoring it

Can't be that worried or they would not keep pushing it up.

Love it, "May not have much impact" They don't have a clue that statement does not instill any confidence that those in charge know how to correct the strengthening Baht.

They don't have any notice or they don't want to see it, but when tourism collapse drastic they will have to do something  even they don't know what to do.

1 hour ago, Jonathan Fairfield said:

Thailand's real interest rates are low compared with those of its regional peers, so cutting the benchmark rate may not have much impact, the central bank said on Wednesday.

so this must be a good time to buy the baht!

keep up the good work central bank!

Clueless!

4 hours ago, Jonathan Fairfield said:

Thai central bank says cutting policy rate may not have much impact

Overall since Prayut's appointment of BOT's new Governor, it hasn't had any new policies that have had much positive impact on the Thai economy.

6 minutes ago, Srikcir said:

Overall since Prayut's appointment of BOT's new Governor, it hasn't had any new policies that have had much positive impact on the Thai economy.

To true!

set the rate at -0.5 %

I guarantee a big impact

They must drop rates soon - the baht is too strong and will damage their ability to perform trade!

If they do not drop rates and make ease of access better there will be a serious recession within 2 years

BoT created this Baht mess due to their high interest rates and overzealous short term foreign purchase bond sales.  Gotta believe somebody profits from this.  Meanwhile the export market tanks, household debt has reached record levels, tourists are scarce, and expats have had enough.

6 hours ago, RotMahKid said:

They don't have any notice or they don't want to see it, but when tourism collapse drastic they will have to do something  even they don't know what to do.

the other government guy said the tourism collapse has  nothing to do with the strong baht..... who to believe, not TAT

2 hours ago, Srikcir said:

Overall since Prayut's appointment of BOT's new Governor, it hasn't had any new policies that have had much positive impact on the Thai economy.

since he was appointed by Prayut we shouldn't expect any positive impact

21 minutes ago, Isaan sailor said:

Gotta believe somebody profits from this.

had to agree and it's always the same ones or/and their relatives, nothing has changed, same same but different

not much impact, they must be kidding again. Since the USA/China trade war many Chinese companies have relocated outside of China in order to continue their production and keep supplying the USA customers, as per CCTV4, they moved neighboring countries such as Vietnam, Taiwan, Cambodia, Malaysia and NOT 1 (0ne) moved to Thailand and/or Laos because their currency strategy was not appealing to Chinese investors, before 1 RMB Yuan was 5 bath now it's around 4.40

Consider that the fallout from the US-China trade war has propelled Vietnam, Taiwan and South Korea.  Their economies are now booming—as suppliers move out of China.  Thailand has completely missed the boat.  Too many alliances with the ChiComs, and a Baht that discourages any outside investments.  BoT squarely to blame for this.