Protests force Thailand to lower interest rate

[DGIE]

lowered interest rate...

So my few Bahts in the bank has no more chance to earn interest.

Not interested in the interest anyway. Spend more on fee/charge than the interest when withdrawing in another ATMs

[phitsanulokjohn]

Hey, I'm all for it. Lower interest rates should mean a weaker Baht.

Yep me too,my pound is already going in an upward direction and when the uk finally raises it's artificially low rates that they've kept on hold for more than 3 years,then we'll really see things start to dance.

[dru2]

Hey, I'm all for it. Lower interest rates should mean a weaker Baht.

Yep me too,my pound is already going in an upward direction and when the uk finally raises it's artificially low rates that they've kept on hold for more than 3 years,then we'll really see things start to dance.

Add in the effects of US quantitative easing "tapering" in the next two or three months...

[cvs04]

Bloomberg is a media outlet and the word "recession" makes for an eye catching headline.

The reality is that GDP was down in respect to the same quarter of the previous year. This is not a recession merely a slowing in growth from the previous year.

I wonder how much Mayor Bloomberg and his friends made by shorting the baht and SET after the report? No wonder he's a billionaire!

[Ricardo]

It's perfectly possible for GDP to grow, over the year as-a-whole, while Q2 &Q3 are negative, hence Thailand is technically in-recession.

None of that is news, if you recall other threads, over the past month or so.

What is interesting is that the BoT is trying to blame this on the recent protests, rather than economic mismanagement, by the current administration.

[Robby nz]

What three other government banks are in trouble?

The three Thai Banks which were recently reported to be having problems are :

The Govt savings Bank, which has recently leant 200 billion to the Govt for the flood scheme.

The Islamic Bank.

The SME Bank.

All Govt banks.

The 2 latter were said to be in trouble with an excess of NPL's

Sorry I cant provide you with links as it was some time back and if I remember correctly in another publication not to be linked to .

Note my words "reported and Said to be"

[marcusd]

No idea. Generally central banks lower interest rates in the hopes that banks will offer cheap loans in order pump money into the system to stimulate the economy. That's why the U.S. does it anyway To blame it on some protestors is pretty hilarious.

I think they lowered them because the economy is in recession, the government - and especially Kittirat - are in denial, and it is both easy and politically advantageous to blame someone else.

If not (favourite choice) noxious foreign influences, then anti-government protesters.

They all do this, not just Peua Thai - I feel sure some of the forum's Red Shirt supporters would agree this is the case too.

That makes sense. I just thought outright blaming it on the protests was funny.

Recession is when the GDP falls in two successive quarters.

I thought it was 3 successive quarters?

[thailiketoo]

Recession is when the GDP falls in two successive quarters.

I thought it was 3 successive quarters?

A period of temporary economic decline during which trade and industrial activity are reduced, generally identified by a fall in GDP in two successive quarters.. Google to confirm.

[Ulic]

There are positives and negatives when you lower the interest rate. Baht falls imports become more expensive thus they fall.

Gas prices go up exports from Thailand become more competitive so exports increase. From what I have read Thailand

is in a technical recession. So the government lowers the interest rate to lower the baht and stimulate the economy. All standard

practise of governments. However people don't like to pay more for gas and imported products so the current government looks to

blame that part of the result of lowering interest rates on the opposition. Thus the misleading headline of the article.

That is the way I see in anyway. Spin, just government spin for those who just read the headlines not the fine print.

[millwall_fan]

So Suthep is doing some good after all!! K. Kittirat the finance minister has been telling the governor for months that interest rates needed lowering, but he refused to do so because the ruling elite were making huge profits investing in foreign firms on the back of a strong baht. I hope all you ex-pat pensioners are finally enjoying the exchange rate windfall that Mr. Kittirat would have given you several months ago.

[thailiketoo]

So Suthep is doing some good after all!! K. Kittirat the finance minister has been telling the governor for months that interest rates needed lowering, but he refused to do so because the ruling elite were making huge profits investing in foreign firms on the back of a strong baht. I hope all you ex-pat pensioners are finally enjoying the exchange rate windfall that Mr. Kittirat would have given you several months ago.

A half of one baht is not really a windfall.

[stoli]

No idea. Generally central banks lower interest rates in the hopes that banks will offer cheap loans in order pump money into the system to stimulate the economy. That's why the U.S. does it anyway To blame it on some protestors is pretty hilarious.

What a bizarre comment. The Secretary General of the Monetary Policy Committee didn't 'blame it on some protestors'. He gave reasons why the economy needs stimulating, one of which is the negative economic impact of the protests. This is completely obvious and uncontroversial.

Did you miss the headline in big bold letters?

Protests Force Thailand To Lower Interest Rate

An online blogger can certainly type in any headline that he wishes to put. This does not make it true. Protests are not tied to the interest rate. Markets around the world have been pulling their monies out of Thailand for a few months as they can get good returns in countries with better economies than Thailand at this time. Why pay higher than necessary interest rates to your own people without the possibility of gaining more funds from overseas?

[Langsuan Man]

Has everyone forgotten the 2 Trillion Baht that they want to borrow for the silly high speed train and other pork barrel projects ?

That is why they lowered the interest rates, so they will pay less to borrow for their populist policies

[MaiChai]

Red shirt supporters in denial. Lets face it government mismanaging the economy does not make Thailand an attractive investment.