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Bank of Thailand Interest Rate Cut Offers Boost to Tourism Sector


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Posted
6 hours ago, webfact said:

Thailand's tourism sector gets a boost following an unexpected interest rate cut by the Bank of Thailand, reducing the official rate by 25 basis points to 2.25% on Wednesday. This move is poised to energise the sector, allowing tour operators to expand and attract more tourists.

Might take more than a few days to kick-in

Posted

Again , last week gold had a dip , the thb dipped , now gold is back higher , nearly 80k euro and the thb goes up.

The goldshops here don't have to change their price , gold in thb is stable. 

Posted

And in another news article today, the resorts are making a rate hike up to the high season, so probably won't change much...:whistling:
 

 

Posted
On 10/17/2024 at 8:29 AM, smedly said:

how on earth does a strong baht help tourism ?

 

 

 

In economic theory, Central Bank Interest Cut usually has an effect to weaken the currency of the respective country.

It makes own country money  Looks  Less Attractive to the eyes of the currency traders(encouraging them to sell rather than buy).

 

Even though it doesn't always work that way.

Other factors like Current Account Balance(if the country is in black or red) and Foreign Exchange Reserve(currently pretty high in Thailand)  can reduce the impact of the lower interest rate.

 

 

 

 

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Posted
52 minutes ago, black tabby12345 said:

In economic theory, Central Bank Interest Cut usually has an effect to weaken the currency of the respective country.

no kidding

 

maybe doesn't apply in a 3rd world corrupt banana state

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Posted
6 hours ago, smedly said:

no kidding

 

maybe doesn't apply in a 3rd world corrupt banana state

 

You better separate your emotion, and facts.

Otherwise, you are just giving away your ignorance based on prejudice.

 

Facts:

Thailand is strongly in Black, not in Red.

And their Foreign Exchange Reserve significantly increased, compared to 2 years ago.

These things are economic fundamentals behind current High Baht.

 

Thailand foreign exchange reserve s world ranking - Google Search

 

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Posted

Not all players believe the US Fed will cut rates as currently thought, many believe the US 10 year will go back to 5% inside 6 months. That being the case, USD will remain stronger for longer and that means more Baht per buck.

Posted
10 hours ago, black tabby12345 said:

 

In economic theory, Central Bank Interest Cut usually has an effect to weaken the currency of the respective country.

It makes own country money  Looks  Less Attractive to the eyes of the currency traders(encouraging them to sell rather than buy).

 

Even though it doesn't always work that way.

Other factors like Current Account Balance(if the country is in black or red) and Foreign Exchange Reserve(currently pretty high in Thailand)  can reduce the impact of the lower interest rate.

 

 

 

 

 

Not inaccurate but they have left it late and they are behind the US who just cut 0.5%. 

 

Dare I say it but Srettha was right in suggesting an earlier rate cut might have set some momentum for a weaker THB for tourism/exports and to stimulate local investment. 

Posted
On 10/17/2024 at 3:29 AM, smedly said:

how on earth does a strong baht help tourism ?

 

they obviously need to do something different 

they reduced the intrest rate , in an attempt to make the baht weaker in the USD/THB pair.

in mediumterm it could help to make the THB weaker , but imposses other risks

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