Famous Singer Tik Shiro Involved in Fatal Bangkok Car Accident, Two Dead

[webfact]

BoT warns entrepreneurs on further volatility in money market

BANGKOK(TNA) -- Bank of Thailand (BoT) Deputy Governor Bandid Nijathaworn on Thursday forecast the international money market would fluctuate very heavily this year and urged entrepreneurs to brace for the situation.

He said the high volatility of the market stemmed from the uncertainty of the global economic recovery as unemployment in the United States remained high.

Also, lending by financial institutions overseas had not yet increased due to the European public debt crisis, causing greater difficulties in using fiscal policy to stimulate the economy.

“Given these factors, the Thai money market will become more volatile for a while," he said, advising entrepreneurs "to closely monitor the movement of the global money market and realise possible risks and uncertainties. They should keep a watch on negative and positive news and information to be used for decision on business performance of their own and trading partners.”

Mr Bandit said economic factors in Asia are better than those of main industrialized nations. Consequently, Asian economic growth is expected to outpace that of the G-3 nations: the United States, Japan, and European Union.

Under the circumstance, more foreign capital is expected to flow into Asian countries including Thailand.

Simultaneously, some investors remain uncertain about investments due to concerns on the global economic crisis and are likely to shift the capital between Asian and European countries, which could cause risks in capital movements in Asia and Thailand.

The expected increase in the capital inflow would stoke the inflationary pressure, forcing the central bank to adjust monetary policy sooner, but the decision also depended on the economic conditions and proper timeframe, he said. (TNA)

-- TNA 2010-06-18