Thailand holds interest rate after army takeover

[webfact]

Thailand holds interest rate after army takeover

BANGKOK, June 18, 2014 (AFP) - Thailand's central bank held its key interest rate Wednesday, in its first monetary policy decision since the army toppled a civilian government whose spending plans were hamstrung by months of political turmoil.

The Bank of Thailand kept its policy rate at 2.00 percent, a level set in March in an effort to boost a flagging economy which shrank 2.1 percent quarter-on-quarter in the first three months of 2014.

The move comes as Thailand tries to stave off recession after months of economic gloom caused by a political crisis which chilled government spending, weakened business confidence and frightened off tourists.

Thailand's army seized power from the elected government on May 22, pledging to galvanise the kingdom's stuttering economy.

"Following a significant reduction of political uncertainties, the economy should benefit from improving public and private spending... and a resumption of functioning public policy," Paiboon Kittisrikangwan, of the bank's Monetary Policy Committee, said in a statement.

"The economic recovery should pick up pace," he added.

But he warned risks remained from sagging tourist arrivals and inflationary pressures.

To kick-start the economy, the junta has pledged support for small and mid-sized firms, as well as tax reform and the creation of special economic zones on the country's borders.

It is also reviewing infrastructure projects begun by the ousted government of former premier Yingluck Shinawatra, which was accused by its critics of cronyism and corruption.

The army's main measure so far has been to unblock $2.8 billion for farmers under Yingluck's loss-making rice price guarantee scheme, while consumer confidence has edged up.

"Importantly, fiscal spending now looks to be back on track as the army does not face the restrictions the previous caretaker government had to deal with," Krystal Tan of Capital Economics said in a statement reacting to the rate announcement.

But she warned the economy is still in a "delicate state", adding renewed spending will take some time to spin off into the wider economy.

Thailand's long-running crisis broadly pits Yingluck's elder brother Thaksin -- a billionaire tycoon-turned-politician toppled in the 2006 coup -- against a royalist establishment backed by parts of the military and judiciary.

While the country has earned the nickname "Teflon Thailand" for its record of bouncing back from past episodes of political turmoil, experts say the current bout of uncertainty raises questions over the long-term wisdom of investing in the kingdom.


-- (c) Copyright AFP 2014-06-18

[AnotherOneAmerican]

Every country in the history of the world with a Military Junta in control has become an economic basket case.

Why would anyone expect Thailand to be the first to make a go of things?

It can only get worse.

[smutcakes]

Every country in the history of the world with a Military Junta in control has become an economic basket case.

Why would anyone expect Thailand to be the first to make a go of things?

It can only get worse.

You dont understand mate- this time its different to the other 18 odd attempts.

[Commander Tamson]

I'm no economist, but considering the recently imposed negative interest rates in Europe, this is surely of interest (excuse the pun) to short term investors.

Or am I wrong?

[webfact]

INFLATION
Policy rate maintained at 2%
The Nation

BANGKOK: -- The Bank of Thailand's Monetary Policy Committee today decided to maintain the policy rate at 2 per cent, though the economic outlook remains uncertain.

Paiboon Kittisrikangwan, secretary to the MPC, said at the press conference that all 7 members agreed to mantain the rate.

A major concern is placed on the export recovery, which has been slow and insufficient to bolster the economy. Tourism income could also be dented.

Meanwhile, the public and private investment is expected to show an improvement, thanks to the greater political stability.

Paiboon noted that inflation may rise slightly due to the hikes in cooking gas price in the past months. However, though cooked food prices may rise, there is no sign that such would spill to other goods prices.


-- The Nation 2014-06-18

[Michael S]

I'm no economist, but considering the recently imposed negative interest rates in Europe, this is surely of interest (excuse the pun) to short term investors.

Or am I wrong?

Yes, it is actually more beneficial to the short term investors as you receive 2% interest with little risk. However for the country this means that the money will just lay around (in their bank account) instead of being invested (which would help the economy).

[paz]

You dont understand mate- this time its different to the other 18 odd attempts.

Another case of "my coup is different" ?

[Robby nz]

Thailand's army seized power from the elected government

Always have to smile when I see that one.

What elected Government ?

There was the sad remains of a cabinet with 26 appointed ministers or deputies every last one appointed by a convicted criminal on the run, some of them with court cases yet to be heard against them for various offenses.

It would be more correct to call them the rotting remains of a once elected Government who were still taking orders from the criminal on the run.

Confidence appears to be coming back after the initial wailing and gnashing of teeth by some foreign powers.

Shortly we should see the Cambodian workers coming back, this time legally so there is less chance of them being taken advantage of by unscrupulous employers.

[Thailand]

Thailand's army seized power from the elected government

Always have to smile when I see that one.

What elected Government ?

There was the sad remains of a cabinet with 26 appointed ministers or deputies every last one appointed by a convicted criminal on the run, some of them with court cases yet to be heard against them for various offenses.

It would be more correct to call them the rotting remains of a once elected Government who were still taking orders from the criminal on the run.

Confidence appears to be coming back after the initial wailing and gnashing of teeth by some foreign powers.

Shortly we should see the Cambodian workers coming back, this time legally so there is less chance of them being taken advantage of by unscrupulous employers.

How did that "elected" government get there in the first place, didn't some of the populace vote for them?

Next year workers from the ASEAN block will be able to live and work in the other countries, Thailand included but given the option where do you think they might choose to go with Thailand rapidly moving towards recession and their recent treatment?

[ggold]

I'm no economist, but considering the recently imposed negative interest rates in Europe, this is surely of interest (excuse the pun) to short term investors.

Or am I wrong?

Very wrong.

[sjaak327]

Thailand's army seized power from the elected government

Always have to smile when I see that one.

What elected Government ?

There was the sad remains of a cabinet with 26 appointed ministers or deputies every last one appointed by a convicted criminal on the run, some of them with court cases yet to be heard against them for various offenses.

It would be more correct to call them the rotting remains of a once elected Government who were still taking orders from the criminal on the run.

Confidence appears to be coming back after the initial wailing and gnashing of teeth by some foreign powers.

Shortly we should see the Cambodian workers coming back, this time legally so there is less chance of them being taken advantage of by unscrupulous employers.

How did that "elected" government get there in the first place, didn't some of the populace vote for them?

Next year workers from the ASEAN block will be able to live and work in the other countries, Thailand included but given the option where do you think they might choose to go with Thailand rapidly moving towards recession and their recent treatment?

Yes, they certainly were voted in by the Thai voters. The currently government however wasn't.

Heck they dissolved the house and called for new elections, elections that have been made impossible by Suthep and his friends. You can't have the whole Thai electorate decide on who should lead them, god forbid they would have been re-elected. Much better to have the military lead, that way, the Cambodians soon would have no need to go work in Thailand.

Edited June 18, 2014 by sjaak327

[Commander Tamson]

I'm no economist, but considering the recently imposed negative interest rates in Europe, this is surely of interest (excuse the pun) to short term investors.

Or am I wrong?

Very wrong.

Thank you very much. A most comprehensive response!

Your name isn't William Anker by any chance is it?

[ginjag]

Thailand's army seized power from the elected government

Always have to smile when I see that one.

What elected Government ?

There was the sad remains of a cabinet with 26 appointed ministers or deputies every last one appointed by a convicted criminal on the run, some of them with court cases yet to be heard against them for various offenses.

It would be more correct to call them the rotting remains of a once elected Government who were still taking orders from the criminal on the run.

Confidence appears to be coming back after the initial wailing and gnashing of teeth by some foreign powers.

Shortly we should see the Cambodian workers coming back, this time legally so there is less chance of them being taken advantage of by unscrupulous employers.

How did that "elected" government get there in the first place, didn't some of the populace vote for them?

Next year workers from the ASEAN block will be able to live and work in the other countries, Thailand included but given the option where do you think they might choose to go with Thailand rapidly moving towards recession and their recent treatment?

Yes, they certainly were voted in by the Thai voters. The currently government however wasn't.

Heck they dissolved the house and called for new elections, elections that have been made impossible by Suthep and his friends. You can't have the whole Thai electorate decide on who should lead them, god forbid they would have been re-elected. Much better to have the military lead, that way, the Cambodians soon would have no need to go work in Thailand.

Why did they dissolve the house, when you answered that then answer, the reason being ????----then before that diabolical governing--un democratic.

Before that democratically elected and they squandered-made illegal parliament decisions. 3 years of them and now here we are.

You cannot elect back in an illegal run government that is why it was stopped in it's tracks.

I know your answer before you reply by the way. How do I know ?? just look back to the replies from the sad few others that are PTP lovers.

[sjaak327]

Yes, they certainly were voted in by the Thai voters. The currently government however wasn't.

Heck they dissolved the house and called for new elections, elections that have been made impossible by Suthep and his friends. You can't have the whole Thai electorate decide on who should lead them, god forbid they would have been re-elected. Much better to have the military lead, that way, the Cambodians soon would have no need to go work in Thailand.

Why did they dissolve the house, when you answered that then answer, the reason being ????----then before that diabolical governing--un democratic.

Before that democratically elected and they squandered-made illegal parliament decisions. 3 years of them and now here we are.

You cannot elect back in an illegal run government that is why it was stopped in it's tracks.

I know your answer before you reply by the way. How do I know ?? just look back to the replies from the sad few others that are PTP lovers.

I am not a PTP lover, I am pointing out that they in fact were the legitimate elected government of Thailand. As opposed to the current government.

By dissolving the house, they have made an end to their power base and decided to return to the electorate in elections. This happens all over the world, and is considered a perfectly normal and legitimate way to determine who should lead the country.

Suthep and his commitee with the fancy marketing name wanted something else, something that was highly illegal.

Funny how people scream about alleged violation of the constitution and then in the same sentence propose a solution that is violating that very same constitution. And then they find it funny that people not take them seriously !

[paz]

Shortly we should see the Cambodian workers coming back, this time legally so there is less chance of them being taken advantage of by unscrupulous employers.

Dream on, you can have a businessman Thai agree with a military coup, but cannot have the same paying his 100 workers 300 Bt. a day when 100 have always been enough.

[ggold]

I'm no economist, but considering the recently imposed negative interest rates in Europe, this is surely of interest (excuse the pun) to short term investors.

Or am I wrong?

Very wrong.

Thank you very much. A most comprehensive response!

Your name isn't William Anker by any chance is it?

I thought that was your name when I read you're question!

[ginjag]

Yes, they certainly were voted in by the Thai voters. The currently government however wasn't.

Heck they dissolved the house and called for new elections, elections that have been made impossible by Suthep and his friends. You can't have the whole Thai electorate decide on who should lead them, god forbid they would have been re-elected. Much better to have the military lead, that way, the Cambodians soon would have no need to go work in Thailand.

Why did they dissolve the house, when you answered that then answer, the reason being ????----then before that diabolical governing--un democratic.

Before that democratically elected and they squandered-made illegal parliament decisions. 3 years of them and now here we are.

You cannot elect back in an illegal run government that is why it was stopped in it's tracks.

I know your answer before you reply by the way. How do I know ?? just look back to the replies from the sad few others that are PTP lovers.

I am not a PTP lover, I am pointing out that they in fact were the legitimate elected government of Thailand. As opposed to the current government.

By dissolving the house, they have made an end to their power base and decided to return to the electorate in elections. This happens all over the world, and is considered a perfectly normal and legitimate way to determine who should lead the country.

Suthep and his commitee with the fancy marketing name wanted something else, something that was highly illegal.

Funny how people scream about alleged violation of the constitution and then in the same sentence propose a solution that is violating that very same constitution. And then they find it funny that people not take them seriously !

1st line/paragraph, only elected as opposed to governing non democratic.

When you abuse the power they had they were not in a position to try to get re elected to repeat the same undemocratic governing. This does not happen like this all over the world as you put it, in other countries their government would have been immediately thrown out---difference. PTP tried a trick that backfired--they thought they could get away with a quick election for another 4 years---they self destructed.

It wasn't Suthep that wanted it, it was anyone with balls to expose the Shins regime.

Thailand moves forward now--it never could have done with the PTP--just imagine another 3 years or so under Thaksin regime---

You are not a PTP lover you said----so because it was done this way you say it's illegal, and not constitutional ??? but it's better, that is why Thailand is unique.

It was against your /the rules, so what do you do--have that silly Feb election and leave Thailand where??

EXPOSURE of all told Thailand to re think, and I am sure they will next time.

[ggold]

Yes, they certainly were voted in by the Thai voters. The currently government however wasn't.

Heck they dissolved the house and called for new elections, elections that have been made impossible by Suthep and his friends. You can't have the whole Thai electorate decide on who should lead them, god forbid they would have been re-elected. Much better to have the military lead, that way, the Cambodians soon would have no need to go work in Thailand.

Why did they dissolve the house, when you answered that then answer, the reason being ????----then before that diabolical governing--un democratic.

Before that democratically elected and they squandered-made illegal parliament decisions. 3 years of them and now here we are.

You cannot elect back in an illegal run government that is why it was stopped in it's tracks.

I know your answer before you reply by the way. How do I know ?? just look back to the replies from the sad few others that are PTP lovers.

I am not a PTP lover, I am pointing out that they in fact were the legitimate elected government of Thailand. As opposed to the current government.

By dissolving the house, they have made an end to their power base and decided to return to the electorate in elections. This happens all over the world, and is considered a perfectly normal and legitimate way to determine who should lead the country.

Suthep and his commitee with the fancy marketing name wanted something else, something that was highly illegal.

Funny how people scream about alleged violation of the constitution and then in the same sentence propose a solution that is violating that very same constitution. And then they find it funny that people not take them seriously !

In any other country you would be right, but then a government only goes to the people in such a situation when there is a major change in policy for example if the UK allowed a referendum of being in the EU without making it an election promise! You could argue that if Cameron really believe the majority wanted to stay in the EU he might call a snap election rather than wait till 2017?

As has been said PTP imagined they could bamboozle the electorate into giving them another 4 years in corruption. It backfired in their faces. You should also realise that possibly the current constitution has so many holes in it, that it is unworkable. How else can a corrupt politician return to politics after a five year ban, which constitution allows for a convicted (on the run) politician to have his passport returned while still on the run and not having served his sentence? to think if he had returned and served his time, he would now be able to legitimately stand for election and could become PM again! Is that a working constitution?

Anywhere else and you would be right. BUT as people keep on saying "This Is Thailand"

[Robby nz]

Thailand's army seized power from the elected government

Always have to smile when I see that one.

What elected Government ?

There was the sad remains of a cabinet with 26 appointed ministers or deputies every last one appointed by a convicted criminal on the run, some of them with court cases yet to be heard against them for various offenses.

It would be more correct to call them the rotting remains of a once elected Government who were still taking orders from the criminal on the run.

Confidence appears to be coming back after the initial wailing and gnashing of teeth by some foreign powers.

Shortly we should see the Cambodian workers coming back, this time legally so there is less chance of them being taken advantage of by unscrupulous employers.

How did that "elected" government get there in the first place, didn't some of the populace vote for them?

Next year workers from the ASEAN block will be able to live and work in the other countries, Thailand included but given the option where do you think they might choose to go with Thailand rapidly moving towards recession and their recent treatment?

Now where did I claim that there never was an elected Govt ? There was, note the was.

However what was left was not a Govt and none of them were elected.

You should read up on the ASEAN rules before you post.

Anyway, which other ASEAN country do you think would pay a better wage to a laborer ?

People are coming from the immediate neighbor countries to Thailand for work, I doubt Singapore or Brunei would want them so that doesn't leave a great choice out of 10 and you can rule out Vietnam for if the Cambodians could get a better deal there they would go that way.

Yes its a shame that the antics of the last 3 years of an elected Govt have left the country on the road to recession and whoever started the dastardly rumor that these unfortunately people would be killed and mistreated if the did not leave has a lot of misery to answer for.

[sjaak327]

Yes, they certainly were voted in by the Thai voters. The currently government however wasn't.

Heck they dissolved the house and called for new elections, elections that have been made impossible by Suthep and his friends. You can't have the whole Thai electorate decide on who should lead them, god forbid they would have been re-elected. Much better to have the military lead, that way, the Cambodians soon would have no need to go work in Thailand.

Why did they dissolve the house, when you answered that then answer, the reason being ????----then before that diabolical governing--un democratic.

Before that democratically elected and they squandered-made illegal parliament decisions. 3 years of them and now here we are.

You cannot elect back in an illegal run government that is why it was stopped in it's tracks.

I know your answer before you reply by the way. How do I know ?? just look back to the replies from the sad few others that are PTP lovers.

I am not a PTP lover, I am pointing out that they in fact were the legitimate elected government of Thailand. As opposed to the current government.

By dissolving the house, they have made an end to their power base and decided to return to the electorate in elections. This happens all over the world, and is considered a perfectly normal and legitimate way to determine who should lead the country.

Suthep and his commitee with the fancy marketing name wanted something else, something that was highly illegal.

Funny how people scream about alleged violation of the constitution and then in the same sentence propose a solution that is violating that very same constitution. And then they find it funny that people not take them seriously !

1st line/paragraph, only elected as opposed to governing non democratic.

When you abuse the power they had they were not in a position to try to get re elected to repeat the same undemocratic governing. This does not happen like this all over the world as you put it, in other countries their government would have been immediately thrown out---difference. PTP tried a trick that backfired--they thought they could get away with a quick election for another 4 years---they self destructed.

It wasn't Suthep that wanted it, it was anyone with balls to expose the Shins regime.

Thailand moves forward now--it never could have done with the PTP--just imagine another 3 years or so under Thaksin regime---

You are not a PTP lover you said----so because it was done this way you say it's illegal, and not constitutional ??? but it's better, that is why Thailand is unique.

It was against your /the rules, so what do you do--have that silly Feb election and leave Thailand where??

EXPOSURE of all told Thailand to re think, and I am sure they will next time.

Trying to pass the amnesty law isn't a case of abusing their power, it is their right to pass laws to Parliament and Senate, it is the main function of a government.

If they did break the rules, there were institutions and procedures put in place to deal with those. Asking them to resign and hand over power to some "council" with a fancy marketing name isn't part of the rules, and the constitution doesn't allow for it (which would be bloody obvious, after all such a thing has nothing to do with democracy).

If you accuse someone of not following the rules, you need to make damm sure you yourself follow these rules, otherwise you are just as bad. This point totally escapes you. Suthep and his friends broke plenty of rules in the book, including violating people's rights to run for office and subsequently their rights to vote. By doing that they completely disqualified themselves, there cannot be any argument to the contrary. Remember those elections were mandated by the constitution and royally aproved.

You obviously haven't learned from the last time, even though it was only 7 years ago, I guess some people never ever learn. They close their eyes, and don't see what is really going on. They discard who they are dealing with. The militairy has for centuries been a force behind the scenes in Thailand, they have their own interest both in terms of finance and power and they will pursue those interest only.

Just as they have done in all the previous coups.

[sjaak327]

Yes, they certainly were voted in by the Thai voters. The currently government however wasn't.

Heck they dissolved the house and called for new elections, elections that have been made impossible by Suthep and his friends. You can't have the whole Thai electorate decide on who should lead them, god forbid they would have been re-elected. Much better to have the military lead, that way, the Cambodians soon would have no need to go work in Thailand.

Why did they dissolve the house, when you answered that then answer, the reason being ????----then before that diabolical governing--un democratic.

Before that democratically elected and they squandered-made illegal parliament decisions. 3 years of them and now here we are.

You cannot elect back in an illegal run government that is why it was stopped in it's tracks.

I know your answer before you reply by the way. How do I know ?? just look back to the replies from the sad few others that are PTP lovers.

I am not a PTP lover, I am pointing out that they in fact were the legitimate elected government of Thailand. As opposed to the current government.

By dissolving the house, they have made an end to their power base and decided to return to the electorate in elections. This happens all over the world, and is considered a perfectly normal and legitimate way to determine who should lead the country.

Suthep and his commitee with the fancy marketing name wanted something else, something that was highly illegal.

Funny how people scream about alleged violation of the constitution and then in the same sentence propose a solution that is violating that very same constitution. And then they find it funny that people not take them seriously !

In any other country you would be right, but then a government only goes to the people in such a situation when there is a major change in policy for example if the UK allowed a referendum of being in the EU without making it an election promise! You could argue that if Cameron really believe the majority wanted to stay in the EU he might call a snap election rather than wait till 2017?

As has been said PTP imagined they could bamboozle the electorate into giving them another 4 years in corruption. It backfired in their faces. You should also realise that possibly the current constitution has so many holes in it, that it is unworkable. How else can a corrupt politician return to politics after a five year ban, which constitution allows for a convicted (on the run) politician to have his passport returned while still on the run and not having served his sentence? to think if he had returned and served his time, he would now be able to legitimately stand for election and could become PM again! Is that a working constitution?

Anywhere else and you would be right. BUT as people keep on saying "This Is Thailand"

Let's just say that Cameron doesn't have to deal with protestors that demand he hands power over to them, using threats of total disruption. He doesn't have people trying to disrupt general life in London for over 6 months either. Granted, if such people did exists, they probably would have been dealt with in a proper way.

[ggold]

Why did they dissolve the house, when you answered that then answer, the reason being ????----then before that diabolical governing--un democratic.

Before that democratically elected and they squandered-made illegal parliament decisions. 3 years of them and now here we are.

You cannot elect back in an illegal run government that is why it was stopped in it's tracks.

I know your answer before you reply by the way. How do I know ?? just look back to the replies from the sad few others that are PTP lovers.

I am not a PTP lover, I am pointing out that they in fact were the legitimate elected government of Thailand. As opposed to the current government.

By dissolving the house, they have made an end to their power base and decided to return to the electorate in elections. This happens all over the world, and is considered a perfectly normal and legitimate way to determine who should lead the country.

Suthep and his commitee with the fancy marketing name wanted something else, something that was highly illegal.

Funny how people scream about alleged violation of the constitution and then in the same sentence propose a solution that is violating that very same constitution. And then they find it funny that people not take them seriously !

In any other country you would be right, but then a government only goes to the people in such a situation when there is a major change in policy for example if the UK allowed a referendum of being in the EU without making it an election promise! You could argue that if Cameron really believe the majority wanted to stay in the EU he might call a snap election rather than wait till 2017?

As has been said PTP imagined they could bamboozle the electorate into giving them another 4 years in corruption. It backfired in their faces. You should also realise that possibly the current constitution has so many holes in it, that it is unworkable. How else can a corrupt politician return to politics after a five year ban, which constitution allows for a convicted (on the run) politician to have his passport returned while still on the run and not having served his sentence? to think if he had returned and served his time, he would now be able to legitimately stand for election and could become PM again! Is that a working constitution?

Anywhere else and you would be right. BUT as people keep on saying "This Is Thailand"

Let's just say that Cameron doesn't have to deal with protestors that demand he hands power over to them, using threats of total disruption. He doesn't have people trying to disrupt general life in London for over 6 months either. Granted, if such people did exists, they probably would have been dealt with in a proper way.

So you're problem is that it doesn't matter what sort of constitution it is. but it's wrong for people to democratically protest if it leads to the disolution of the party in government. Remember the courts decided against the DSI in regard to the protests being legal. You're argument doesn't hold up.

[Commander Tamson]

Are the current exchanges in this thread got anything to do with interest rates being held at 2%?

GGold & Ginjag? Wonder how many days of imaginative thought they spent on those names?

Legends in their own living rooms