Thai Chamber of Commerce urges further cutting of key rate

[webfact]

Chamber of commerce urges further cutting of key rate

By THE NATION

 

Kalin

 

The Thai Chamber of Commerce on Thursday asked the Bank of Thailand (BOT) to further trim the benchmark interest rate and contain the strengthening baht in order to boost export competitiveness.

 

Officials of the chamber and the central bank met on Thursday (August 8 ) to discuss economic issues.

 

Chamber chairman Kalin Sarasin said that among the topics discussed was the central bank should seek ways to make Thailand the regional financial hub.

 

They also discussed the central bank's oversight of the baht, which has tended to rise. Kalin welcomed the central bank's decision on Wednesday to cut the policy rate to 1.50 per cent from 1.75 per cent.

 

The chamber also proposed soft and bold measures to the central bank for handling the baht, including further cutting the benchmark rate. The bank should also crack down on cases involving speculation of the baht.

 

The appreciation of the baht for the past four years has hurt the competitiveness of exports and the situation is being worsened by the devaluing yuan and the trade wars, chamber officials said.

 

Atip Bijanonda, honorary president and Adviser of Housing Business Association, who also met central bank officials, said that he had proposed to the BOT to relax the loan-to-value (LTV) measure.

 

The BOT's reduction in LTV became effective on April 1. The new measure restricts loans to 90 per cent of value for the first home, 80 per cent for the second home, and 70 per cent for the third home.

 

Source: https://www.nationthailand.com/business/30374508

 

-- © Copyright The Nation Thailand 2019-08-09

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[mok199]

Stop talking and do something already...

[WeekendRaider]

encouraging more and more debt?

 

and a payoff for the hot money flows that are looking for those lower rates to happen.

 

and that in turn making a greater segment of people need to reach for the tourism related businesses that are based on..... the most intensive emissions source for green house gases, with air travel alone accounting for almost 2 per cent of all global emissions when everything we do, including making solar panels, involves carbon emissions yet 6,400 million of us have never even been inside an airplane once in their lifetime..... more tourism? sounds like maybe something that is not sustainable..... at all? quite this time.

 

what society lived on an island and chopped down all the trees? faster and faster until there were none, nada, zippo, remaining standing.  humans.  as stupid as humans can be..... or simply desparate to make a living.... some of us. not all. but some of us, with the ones with plenty pretending 'I see nothing'. okedokee!

 

lower rates and more debt.... is not going in the right direction. not at all. but 'business' says... step on the accelerator!!!

Edited August 8, 2019 by WeekendRaider

[Isaan sailor]

Should be obvious at this point that drastic action must be taken.  Hot money foreign bond inflows (mostly likely coming from the ChiComs parking maturing USD Treasuries into BoT) are deviating the Thai economy.  High baht will take down tourism, exports and agribusiness.

One possible solution: tax all foreign inflows—or profit taking outflows from foreign sources.

[RichardColeman]

10 hours ago, webfact said:

The BOT's reduction in LTV became effective on April 1. The new measure restricts loans to 90 per cent of value for the first home, 80 per cent for the second home, and 70 per cent for the third home.

Actually that seems a bit daft to me. If you fully own your home with no debt and your home is verified as worth more than the second one you want to buy, then it should be 100% as the bank can secure the loan against a better asset. And by default if you own 2 homes worth more than the third........

 

Problem is that Thai banks and certain Thai mentality will probably use this add add that up to 240% LTV on the three houses you want to buy !

 

[Cadbury]

4 hours ago, Isaan sailor said:

Should be obvious at this point that drastic action must be taken.  Hot money foreign bond inflows (mostly likely coming from the ChiComs parking maturing USD Treasuries into BoT) are deviating the Thai economy.  High baht will take down tourism, exports and agribusiness.

One possible solution: tax all foreign inflows—or profit taking outflows from foreign sources.

What a good idea?? Then you will never see another foreign investment satang come into the country ever again. Foreign companies already pay 30% tax on profits and you want them to pay more to send it out of the country. You should be a minister in the Thai government.

Anyway the government would not do such a thing. Politicians and their elite friends have a funnel which collects a percentage of incoming investment money; it is called "business establishment" commissions.

[Eric Loh]

11 hours ago, webfact said:

The Thai Chamber of Commerce on Thursday asked the Bank of Thailand (BOT) to further trim the benchmark interest rate

Problem with the TCC recommendation, all central banks are thinking the same including the FED who likely to cut 2 to 3 times within this year. Competitive devaluation will not be good for everyone. BOT better use other fiscal policies to rein in the baht. At a low 1.5%, Thailand will run out of monetary tools to help the economy when the world economy goes into another meltdown. Really a matter of when than why if that evil genius is still in the white house.