Jump to content





  • Topics

  • Latest posts...

    1. 2

      Repair of 60 year old watch?

    2. 170

      What game are you playing

    3. 30

      AI

    4. 2,869

      Thai gov. to tax (remitted) income from abroad for tax residents starting 2024 - Part II

    5. 191

      Why Are You Even Here? The Surprising Attitudes of Some Expats in Thailand

    6. 27

      Big C Extra is becoming too dangerous to visit

    7. 1

      Comparisons Between Trump and Dictators Spark Backlash: Atlantic Article Under Fire

    8. 0

      Seoul Demands Immediate Withdrawal of North Korean Troops from Russia Amid Rising Tensions

    9. 0

      Woman Admits to Assault After Throwing Milkshake at Nigel Farage During Election Campaign

    10. 0

      England's Children's Commissioner Urges for Nationwide Ban on Smacking

    11. 0

      Israel's Decapitation Operation: A Game-Changer in Middle Eastern Conflicts

    12. 0

      Labour's Key Manifesto Promises at Risk as Budget Cuts Threaten Farming Fund

    13. 0

      British ICC Prosecutor Karim Khan Denies Misconduct Amid Harassment Allegations

    14. 0

      Europe’s Migration Policies: A Quiet Shift Toward Trump-like Toughness

Bank of Thailand Interest Rate Cut Offers Boost to Tourism Sector


webfact

Recommended Posts

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

Link to comment
Share on other sites

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.

 

 

 

 

Edited by black tabby12345
  • Agree 1
Link to comment
Share on other sites

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

  • Sad 1
  • Thumbs Up 1
  • Agree 1
Link to comment
Share on other sites

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

 

  • Love It 1
Link to comment
Share on other sites

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.

Link to comment
Share on other sites

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. 

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • Recently Browsing   0 members

    • No registered users viewing this page.
×
×
  • Create New...