Thailand Probes Thaksin's Alleged Political Manipulation

[anchadian]

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

[TroubleandGrumpy]

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). 

[AndreasHG]

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.

 

Edited 1 hour ago by AndreasHG