Picture courtesy of The Economic Times
The economy is teetering on the edge as the surging Thai baht causes ripples across the nation.
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The economy is teetering on the edge as the surging Thai baht causes ripples across the nation. In the wake of a significant rate cut by the US Federal Reserve (Fed), local industries are now urging the Bank of Thailand’s Monetary Policy Committee (MPC) to take swift action.
For over a year, the MPC has held interest rates steady, but the recent Fed decision has upped the ante. Manufacturers, exporters, and the tourism sector are all feeling the pressure as the baht continues to climb. While short-term impacts might not seem drastic, the long-term picture looks far grimmer, warned Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (FTI).
“The recent Fed cut of 0.5 percentage points is not good for our exports.”
An FTI survey reveals that 40.6% of entrepreneurs are increasingly concerned about the baht’s relentless…