Policy Rate Expected to Rise by 0.25%

[snoop1130]

 

BANGKOK, Aug 8 (TNA) – The country is ending its low-interest era as the Monetary Policy Committee (MPC) is expected to raise its policy rate by 0.25%.

 

Kobsak Pootrakul, chairman of the Federation of Thai Capital Market Organizations (FETCO), said the Thai economy would this week shift from many years of its low-interest period to the era of increasing interest rates towards their normal levels.

 

He expected the MPC to raise the policy rate by about 0.25%. A main factor behind the policy rate would be the inflation that prompted central banks worldwide to race to increase their policy rates over the past six months and the situation would happen in Thailand, Mr Kobsak said.

 

Full Story: https://tna.mcot.net/english-news-993858

 

-- © Copyright Thai News Agency 2022-08-08

 

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[ThailandRyan]

so a .25 basis point jump, like that is going to assist in slowing down the climbing inflation.  Looks like the idea of the increase has already started to affect the currency exchanges as the USD is down about 1 Bhat per USD in the past week.

[dj230]

kind of late 

[Cake Monster]

The Thai Economy will not stand up to much Interest Rate rises due to the massive amount of Money borrowed at low rates.

Many are already struggling to repay Loans on Houses and Vehicles they took out with a 99 Baht Deposit.

Any rise in the Base Rate will see massive NPL and Managed Loan defaults, which of course will have the knock on effect of increasing any of the Countries borrowings and a further outflow of Foreign Money, and Stock sell offs.

Inflation is a thing the people will have to suffer so the Countries Credit Ratings and perceived " strong Economy " are not affected