Thailand: BoT shies away from rate cut

• The Bank of Thailand reiterated its concern about the THB’s persistent strength on 17 Jul 19, but said cutting the key interest rate may have only a limited impact in dealing with currency’s ascent and instead flagged a preference for using a range of tools.
• The bank plans to ease rules on money outflows by giving more flexibility for portfolio investment by Thai investors, deputy governor Mathee Supapongse said at a briefing in Bangkok.
• Reducing the bond supply is also among the tools officials are ready to use, according to governor Veerathai Santiprabhob.
• The central bank in week ending 14 Jul 19, took steps to curb short-term inflows and restrict the currency’s surge, concerned that a stronger THB will further damage an export-reliant economy.
• Nevertheless, he reiterated that the central bank is ready to adjust the key rate if economic conditions fail to meet expectations.
• Cutting the key rate may have limited impact as Thailand’s real rate is low versus regional countries, Veerathai said.

External Link : https://www.bangkokpost.com/business/1713988/bot-shies-away-from-rate-cut