The Bank of Thailand's Monetary Policy Committee voted 5-2 to lower the policy interest rate by 0.25% to 2.25%

On 10/16/2024 at 2:29 PM, anchadian said:

The Bank of Thailand's Monetary Policy Committee voted 5-2 to lower the policy interest rate by 0.25% to 2.25%

Good - now drop it 0.25% every 1-2 months until it matches Japan (0.25% in total). 

Nevertheless, the Thai Baht keeps on strengthening, closely tracking the gold appreciation.

 

The charts below show that the price of gold in THB has been relatively constant from April '24 onward, while in USD ita has appreciated significantly. This implies that the THB appreciated against the USD (and other major currencies).

There are other factors at play too (FDI, export resiliency and growing tourist inflows), but the link to the gold price is stronger than any rate cut the BOT may introduce.

 

Thai Central Bank lowers the interest rate.

It means Thai inflation rate is low.

That is one of the reasons behind the current Hight Baht.

High Inflation=Decreased monetary value=currency devalues

Low Inflation=Increased monetary value=currency appreciates

 

On 10/19/2024 at 1:52 PM, black tabby12345 said:

Thai Central Bank lowers the interest rate.

It means Thai inflation rate is low.

That is one of the reasons behind the current Hight Baht.

High Inflation=Decreased monetary value=currency devalues

Low Inflation=Increased monetary value=currency appreciates

 

 

  I just received a text from Japan - "Yeah, we don't think so...." 

Good time to buy 10 condos