Central bank in dilemma as it tries to avoid impact from ‘perfect storm’ while keeping inflation at bay

[webfact]

 

By Thanaphum Charoensombatpanich

 

As the opposition grills the government of 2014 coup leader Prayut Chan-ocha for its mismanagement of the Thai economy and how the has managed to rack up debts in the past 8-years that equates to the nearly the previous 80-years of democratic rule in the country, the economy could be on for rougher ride as the Bank of Thailand (BoT) is set to raise rates in less than 2-weeks’ time.

 

The government of Prime Minister Prayut is facing what could be yet another tough year ahead for him as the domestic economy is starting to signs of strains.

 

To make matters worse, the warning issued by the Thai Banker’s Association yesterday, is a stark contrast to what the Prayut government has been saying, which is that the Thai economy is strong and the rise in tourism numbers coupled with stronger exports may help the economic growth.

 

Full story: https://www.thaienquirer.com/41973/central-bank-in-dilemma-as-it-tries-to-avoid-impact-from-perfect-storm-while-keeping-inflation-at-bay/

 

-- © Copyright Thai Enquirer 2022-07-21

 

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[Excel]

3 minutes ago, webfact said:

To make matters worse, the warning issued by the Thai Banker’s Association yesterday, is a stark contrast to what the Prayut government has been saying

Well well don't say that there is an inference there that the Prayut government have not been telling the truth, what a surprise ????

[huangnon]

Quote

As the opposition grills the government of 2014 coup leader Prayut Chan-ocha for its mismanagement of the Thai economy and how the has managed to rack up debts in the past 8-years that equates to the nearly the previous 80-years of democratic rule in the country

Rather worrying. Probably why the World Bank have been sniffing around lately.

 

Great job, Prayut & Co.

[Isaan sailor]

So should we infer that raising interest rates next month would help the economy—by jacking up the Baht?  Illogical.  But that wouldn’t surprise me.

[SmartyMarty]

We're all on a very slippery slope and the handholds are fast disappearing.

[DUNROAMIN]

Keeping inflation at bay, REALLY !!! I must be still dreaming, high fuel, gas, electricity and food costs.

[Cake Monster]

8 hours ago, webfact said:

the economy could be on for rougher ride as the Bank of Thailand (BoT) is set to raise rates in less than 2-weeks’ time.

Any possible rate hike by the Central Bank will only be a very small one, if any at all.

They have very, very little wiggle room to control either the Baht, or Inflation, due to record Household Debts that are very close to 100 % of GDP, an record borrowing, and record lending to book ratio by the Banks.

Any rise in Interest Rates will push the system past its breaking point, and cause  massive NPL on Loans that cannot be repaid.

There will be no room to sweep these Loans under the Carpet as " Special Mention  Loans " ( Loans under the Banks Management )

We await the outcome of this dilemma

[Sparktrader]

1 hour ago, Isaan sailor said:

So should we infer that raising interest rates next month would help the economy—by jacking up the Baht?  Illogical.  But that wouldn’t surprise me.

Reduces inflation

[itsari]

Keep at bay what is soon going to be the inevitable  collapse in the banking system .

Loans that are beyond recovery are being shelved to avoid placing more money in reserve to cover the banks  losses .

 

 

[hotchilli]

22 hours ago, webfact said:

To make matters worse, the warning issued by the Thai Banker’s Association yesterday, is a stark contrast to what the Prayut government has been saying, which is that the Thai economy is strong and the rise in tourism numbers coupled with stronger exports may help the economic growth.

Every story has two sides.. the truth and the economic truth.