Central bank increases key interest rate to 1.00 percent effective Wednesday

[snoop1130]

 

The Bank of Thailand’s Monetary Policy Committee (MPC) has unanimously voted to increase the key interest rate by 0.25%, to 1.00%, with immediate effect.

 

The central bank said, in a statement today (Wednesday), that the Thai economy continues its steady recovery, thanks to the improved tourism sector and increased consumption by the private sector.

 

It said that inflation remains high due to increased production costs, despite an easing in the demand pressure from prices of consumer products.

 

Full Story: https://www.thaipbsworld.com/central-bank-increases-key-interest-rate-to-1-00-percent-effective-wednesday/

 

-- © Copyright Thai PBS 2022-09-28

 

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[ozz1]

It won't be enough to hold off the dollar hopefully it will drop against all the other currencies too  according to them every thing is good but people on the ground know different

[KhunBENQ]

12 minutes ago, ozz1 said:

It won't be enough to hold off the dollar hopefully it will drop against all the other currencies too

Indeed USD and EUR rising slightly today after the decision.

Only the GBP is still struggling.

 

 

[RichardColeman]

Sure the UK would raise interest rates by 2%, and thailand 0.25% and the pound would still dip more - even in £ good times !

[nobodysfriend]

The annual inflation rate in Thailand rose to 7.86% in August 2022 from 7.61% in July and compared with market forecasts of 7.85%. This was the steepest rise in consumer prices since July 2008.

 

If they want to keep up with that , better they follow the US example and rise interest rates to a level that really helps combat the inflation . 1 % is not enough .

[itsari]

1 hour ago, nobodysfriend said:

The annual inflation rate in Thailand rose to 7.86% in August 2022 from 7.61% in July and compared with market forecasts of 7.85%. This was the steepest rise in consumer prices since July 2008.

 

If they want to keep up with that , better they follow the US example and rise interest rates to a level that really helps combat the inflation . 1 % is not enough .

The problem with your suggestion on raising interest rates here in Thailand  at the same amount as the US are doing is that there are many in problems to pay there loans . Obvious repercussions would eventuate 

[Cake Monster]

5 hours ago, nobodysfriend said:

The annual inflation rate in Thailand rose to 7.86% in August 2022 from 7.61% in July and compared with market forecasts of 7.85%. This was the steepest rise in consumer prices since July 2008.

 

If they want to keep up with that , better they follow the US example and rise interest rates to a level that really helps combat the inflation . 1 % is not enough .

Firstly, I personally think that 7,86 % is not the true number, and it is closed to 9 %, or maybe even as high as 10 %.

Secondly, 1 % to combat Inflation is no where near enough as you have correctly pointed out.

This rise to 1 % is neither going to reign in Inflation ( which is due to increase again once the Electricity rises, and minimum wage filter through to Factory Gate prices )

It is a half A@%$D attempt at trying to slow down or halt the Capital outflows from the Country as money from the 2008 crisis is relocated back to higher earning places.

And Thirdly.

The BOT are trying to slow the Interest Rate rises basically because their hands are tied by massive amounts of Household and Corporate Debt that has been amassed during the Covid period.

Loose lending has placed Thousands and Thousands of people very, very close to delinquent Loans and defaults already, and any rise in Interest rates will push them into NPL and Special Mention Loan defaults.

This is a place Thailand does not want to go, but the Loans ( or much of them ) are against poor Asset Value, such as Credit Card Loans, Vehicles and White Goods.

 

 

 

[AgMech Cowboy]

Ahh... The Economic wizards of AseanNow have spoken. 

 

Cake Monster did pretty darn good.  Add one more; at the moment a stronger Baht is not to their advantage. Thailand wants to attract  tourist to the Kingdom and to boast their exports, which will improve by letting the Baht exchange ease.  I wouldn't even hazard a  guess on the GBP (to much wasted Green energy spending?)

Edited September 29, 2022 by AgMech Cowboy

[Purdey]

For a country that seems to depend so much on tourism and exports, one would think a weaker baht would help. But with interest rising there will be a problem paying off debt (again).