bingobongo Posted October 8, 2007 Share Posted October 8, 2007 so which way will the baht go? tune in......at least they are aware that inflation is rising "Inflation last month accelerated to a seven-month high on fuel costs. " http://www.bloomberg.com/apps/news?pid=206...&refer=asia Link to comment Share on other sites More sharing options...
ProThaiExpat Posted October 9, 2007 Share Posted October 9, 2007 As the OP suggests, conversion rate stabilization by governments are fraught with danger on many economic fronts. There was a very intelligent article in Yahoo Finance recently that was titled "U.S. Exports Inflation" based on their weak dollar policy. The best I have seen on all of the conflicting currents in currency issues. Link to comment Share on other sites More sharing options...
sonicdragon Posted October 9, 2007 Share Posted October 9, 2007 As the OP suggests, conversion rate stabilization by governments are fraught with danger on many economic fronts. There was a very intelligent article in Yahoo Finance recently that was titled "U.S. Exports Inflation" based on their weak dollar policy. The best I have seen on all of the conflicting currents in currency issues. Did you mean this, titled "Our biggest export: Inflation" ? http://articles.moneycentral.msn.com/Inves...ion.aspx?page=1 If so, then I fully agree - it is very well written. Link to comment Share on other sites More sharing options...
britmaveric Posted October 9, 2007 Share Posted October 9, 2007 Make the cut!!! Nice having a further weakened baht. Link to comment Share on other sites More sharing options...
fletchsmile Posted October 9, 2007 Share Posted October 9, 2007 so which way will the baht go? tune in......at least they are aware that inflation is rising"Inflation last month accelerated to a seven-month high on fuel costs. " http://www.bloomberg.com/apps/news?pid=206...&refer=asia Bingobongo, Welcome back, have missed your posts... but this one seems balanced. What's up? There's even a danger I agree with you on this one My call: next ratecut will be down, tho' not so sure on timing. THB will weaken before y/e. Link to comment Share on other sites More sharing options...
ProThaiExpat Posted October 10, 2007 Share Posted October 10, 2007 Sonicdragon: Thats the article. Made much sense to me, but then I never really understood the issues very well, especially their interrelationship. I am just to "checkbook mentality" for complex international finance issues. The baht is so unmoving at the moment that the Thai central bank must be intervening a lot. Link to comment Share on other sites More sharing options...
cclub75 Posted October 10, 2007 Share Posted October 10, 2007 The baht is so unmoving at the moment that the Thai central bank must be intervening a lot. Yes. They bought 19 billions USD since january ! "The BOT, it is estimated, bought US$19 billion from the foreign-exchange market to rein in the baht in the first nine months of the year" (Nation) The USD reserves are ballooning (80,6 billions USD now, against 64,8 billions in january, see here). As for the rate cut at the next meeting : I bet no. The price of Mama soup should go up (the manufacturer wants +20 % from 5 to 6 THB per pack), oil is going up, buses prices are going up... At that point, the best solution for BOT it's to do what all the other central banks are doing : wait. And see. And... hope. Link to comment Share on other sites More sharing options...
bingobongo Posted October 10, 2007 Author Share Posted October 10, 2007 (edited) well, they did not cut, i guess they are realizing that inflation is accelerating (in food, gas, and commodities) and they understand that pumping more money into the system is like pushing on a string...... consumer recovery is nonexistent.....a rise of .2% after a drop of 2.3% is insignificant so does som chai fill up the BMW (with expensive gas) or order lobster tonight (with overpriced butter and lemon)? decisions, decisions....... Thai central bank holds rates steady She also said the bank was still keeping its eye on the inflation rate, which rose 2.1 percent last month due to a spike in food prices and rising fuel prices. http://www.forbes.com/markets/feeds/afx/20...afx4204059.html Edited October 10, 2007 by bingobongo Link to comment Share on other sites More sharing options...
samran Posted October 10, 2007 Share Posted October 10, 2007 hopefully the message is getting through that you can't devalue your way to prosperity. No doubt there are various factions within the BOT arguing the case either way. Happy that inflation is being targeted. Plus, the increased strength of the baht is similar in some ways to a rise in the interest rate in the sense that it does the same job. No need to act rashly. Link to comment Share on other sites More sharing options...
Mid Posted October 10, 2007 Share Posted October 10, 2007 inflation rate, which rose 2.1 percent last month due to a spike in food prices as reported prior on tv , nope not by me , see Bkk threads ..................................... Link to comment Share on other sites More sharing options...
bingobongo Posted October 10, 2007 Author Share Posted October 10, 2007 inflation is alive and well.........from food to transportation......... Mama noodle prices set to rise President Boonchai Chokwatana said Mama instant noodle prices would rise in December for the first time in a decade, likely by one baht to six baht per 55- gramme pack. The move comes even as the Commerce Ministry next week will meet with more than 100 consumer goods manufacturers and retailers seeking co-operation to maintain prices for some 200 key products. http://www.thaivisa.com/forum/index.php?ac...13&t=147200 Bus fares to increase mid of October http://www.nationmultimedia.com/breakingnews/read.php?newsid=30051887 Link to comment Share on other sites More sharing options...
AmericanGuy1066 Posted October 11, 2007 Share Posted October 11, 2007 inflation is alive and well.........from food to transportation.........Mama noodle prices set to rise President Boonchai Chokwatana said Mama instant noodle prices would rise in December for the first time in a decade, likely by one baht to six baht per 55- gramme pack. Bus fares to increase mid of October Bingo I know you like life at the lower price ranges. But are things really that bad? You're worried about a 1 baht rise (in 10 years) on the price of a 5 baht packet of noodles, and 0.5baht (50 satang) on your 3.5 baht bus ride without aircon. Your Mrs and I told you not to sell that condo... Link to comment Share on other sites More sharing options...
Mid Posted October 11, 2007 Share Posted October 11, 2007 ^ comments such as the above display naiveness IMHO , what makes you imagine that the effects won't be felt by all ? Link to comment Share on other sites More sharing options...
thedude Posted October 11, 2007 Share Posted October 11, 2007 the MPC decided yesterday to maintain the policy 1 day repurchase rate at 3.75%. i think there will be only one rate meeting left this calendar year, and given the slight recovery in consumption and likelihood in increased inflation, i don't think they will be doing anything rash until the new government is formed in the new year and see how they can balance policy against any new economic agenda from the new administration. Link to comment Share on other sites More sharing options...
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