BoT Raises Interest Rate to 1.75%

[webfact]

 

BANGKOK, March 30 (TNA) – Thailand’s central bank on Wednesday raised its key interest rate by 0.25 percentage points, effective immediately.

Mr. Piti Disyatat, Secretary of the Monetary Policy Committee (MPC) said the Committee voted unanimously to raise the policy rate from 1.50 to 1.75 percent.

 

The Thai economy should continue to expand, driven mainly by tourism and private consumption. Exports of goods are recovering and expected to gain strength in the second half of this year. However, the global economic uncertainty has increased, in part from persistent inflationary pressures and episodes of banking stresses in advanced economies.

 

-- © Copyright Thai News Agency 2023-03-30

 

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[koolkarl]

With 10% annual inflation, the baht should collapse with such a low interest rate.

Baht is a controlled currency.

Obviously the Thai central bank has a USD swap line with the federal reserve, which means that dollars can be sold at

will to buy the baht to artificially prop up the baht.

Isn't it amazing what a printing press can do? And when will the Ponzi scheme of all time end?

 

[nigelforbes]

16 minutes ago, koolkarl said:

With 10% annual inflation, the baht should collapse with such a low interest rate.

Baht is a controlled currency.

Obviously the Thai central bank has a USD swap line with the federal reserve, which means that dollars can be sold at

will to buy the baht to artificially prop up the baht.

Isn't it amazing what a printing press can do? And when will the Ponzi scheme of all time end?

 

There is no Dollar swap line with the Fed and no, the Baht is not artificially propped up! You may want to read the opening post in the thread below to better understand the situation with THB.

 

 

[BritScot]

1 hour ago, nigelforbes said:

There is no Dollar swap line with the Fed and no, the Baht is not artificially propped up! You may want to read the opening post in the thread below to better understand the situation with THB.

 

 

I was in Thailand when it was taken off the currency watch list by USA and I saw the baht immediately spiralled upwards. I believe there is so much laundering going through Thai banks now from all over the world. Hence coups and international investment leaving at unprecedented rates and yet the baht soars.

[nigelforbes]

1 minute ago, BritScot said:

I was in Thailand when it was taken off the currency watch list by USA and I saw the baht immediately spiralled upwards. I believe there is so much laundering going through Thai banks now from all over the world. Hence coups and international investment leaving at unprecedented rates and yet the baht soars.

The currency manipulation watch list has got almost nothing to do with the value of THB, it's about trade and how much Thailand imports from the US. The same is true of several other countries, including Taiwan, Switzerland and Germany. If you look at the link to the thread I posted earlier, you'll also see a link that explains that entire business very well, there's a wonderful chart that tells the complete story instantly, in a single chart.

 

I don't know what you're referring to when you talk about laundering so I can't comment. I do know that there have been expected capital outflows from the SET because the Fed has increased interest rates. Much of that is hot money chasing yield, it ebbs and flows and over the course of the year will balance out and is also offset by inbound FDI, which at the start of the year was strong.

 

Lastly, when people talk about THB soaring, it usually means that USD volatility  has caused the value of the Baht to increase or decrease. Without knowing a specific timeframe, I can't comment on this.

 

[RichardColeman]

6 hours ago, webfact said:

Exports of goods are recovering and expected to gain strength in the second half of this year. However, the global economic uncertainty has increased, in part from persistent inflationary pressures and episodes of banking stresses in advanced economies.

So, that's a normal 'we said they might, or might not' sort of statement in advance