Bangkok Bank indicates lower-than-expected economic growth

[webfact]

Bangkok Bank indicates lower-than-expected economic growth

BANGKOK, 29 April 2015, (NNT) - Executive Vice-President of Bangkok Bank Kobsak Pootrakool has indicated that the bank may revise down its projections for domestic economic growth.

Mr. Kobsak blamed high household debt and low agricultural prices for the sluggish economy. He added that the government may need to consider rebalancing the national currency by changing the exchange rate. The baht has appreciated higher than other currencies in the region.

However, the bank executive said the recently approved 2016 budget might help stimulate the local economy.

Meanwhile, KResearch Center Managing Director Chao Kengchon indicated that the Monetary Policy Committee is likely to leave the benchmark rate untouched at 2 percent.

He said that key factors for investors to monitor include the U.S. Federal Reserve’s decision on the benchmark rate. He believed that the US benchmark rate will also remain unchanged in the near term, as the country continues to recover.


-- NNT 2015-04-29

[Strangebrew]

Now even Bangkok bank see's my point reduce exchange rate.

[Chao Lao Beach]

Reduce it...... and pigs fly,........ unfortuantly.

[Prbkk]

ie, something about which there has been unanimity on this forum for ...at least 6 months if not longer.

[Tatsujin]

And again, they show the complete inability of any Thai to look further into the future than today and/or listen to or learn from anything "outside" Thailand.

Mind you, I could say the same and worse about my home country.

[Thai at Heart]

Well, they have been missing this target for 3 years.

[NeverSure]

Thailand Unexpectedly Cuts Rate After Growth Forecast Cut

The Bank of Thailand lowered its one-day bond repurchase rate by a quarter of a percentage point to 1.5 percent on Wednesday, a move predicted by only two of 20 economists in a Bloomberg survey. The baht slid as much as 0.6 percent, and the benchmark SET index fell as much as 1.2 percent, heading to its lowest close since March 31.

Bloomberg 12:19 AM PDT April 29, 2015

[jabis]

I was expecting the rate cut at around July - well lost a few thousand baht by going to ATM yesterday x)

[Yme]

The current benchmark rate is 1.75 per cent, not 2 per cent as Kbank is "quoted" as stating.

[monkeycountry]

ie, something about which there has been unanimity on this forum for ...at least 6 months if not longer.

True, but the reason this forum agrees on the move is simply because TV members want more value from their pension from abroad, it has nothing to do with improving Thailands overall economy

[Tywais]

The current benchmark rate is 1.75 per cent, not 2 per cent as Kbank is "quoted" as stating.

Actually it has been cut to 1.5% as of yesterday - http://www.thaivisa.com/forum/topic/821231-thailand-surprises-with-cut-in-interest-rate/

[Eric Loh]

I sense that the independence of BOT has been compromised.

[Srikcir]

Cut should have happened 2 months ago. I expect another cut within the next 2 months.

[Tywais]

Cut should have happened 2 months ago. I expect another cut within the next 2 months.

There was a .25 cut in March from 2.0 to 1.75.

[wowfactor10]

So things are not booming in Thailand ?

[ExPratt]

Thai central bank relaxes curbs on capital flows to weaken strong baht

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http://www.straitstimes.com/news/business/economy/story/thai-central-bank-relaxes-curbs-capital-flows-weaken-strong-baht-2015043?

[Jonmarleesco]

'He added that the government may need to consider rebalancing the national currency by changing the exchange rate.' By which, I assume, Khun Kobsak is referring to a 1997-style rebalancing: devaluation. Why not? The baht is not very far off the rate it was trading against the GBP or the USD in 1997.

[Thai at Heart]

They haven't got much powder left in that gun. 1.5%. It will devalue the baht much, but will a few percent make international buyers race over here to buy Thai products?