“Pichai” baht strengthens to 19-month high as a result of US interest rate policy, confirms inflation is still below the range, asks the governor of the Bank of Thailand to talk to each other, adjust interest rate cuts in line with government policy and trading partners
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“Pichai” baht strengthens to 19-month high as a result of US interest rate policy, confirms inflation is still below the range, asks the governor of the Bank of Thailand to talk to each other, adjust interest rate cuts in line with government policy and trading partners
Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance, spoke about the clarity of the Bank of Thailand’s interest rate cut, saying that interest rate policy is an important matter for everyone who wants to invest, so it is something that needs to be discussed. It is clear from the issue of the currency strengthening, until yesterday it was at 23, which is considered the strongest in 19 months. The strengthening of the currency will affect exporters. If the currency weakens, they will be able to export a lot, but it will benefit investors, such as buying foreign machinery. Therefore, each person has different needs. But most importantly, we must first know the cause of the strengthening of the currency. It is an external effect, especially the situation of the United States, which has had a high interest rate policy for a long time. Therefore, every country in the world will be affected because money will flow into developing countries, and Thailand is one of them. When this happens, the result will be inflation. But from the assessment, it should not be as high as expected. However, inflation is one of the factors that will be considered in determining the interest rate. The range is set at 1-3%. Therefore, if the inflation rate is within the range, we have to see if the interest rate is too high. It has just increased the confidence of producers. The government’s policy focuses on economic growth, but if it pushes the interest rate high, it will be the opposite. If you are worried that lowering the interest rate will cause a lot of spending and inflation, I would like to confirm that the inflation rate is lower than the low frame and I would like to come up with a joint monetary and fiscal policy and follow what the government promised the people. “If you are afraid that lowering the interest rate will cause people to borrow more and become more in debt, we see that this is true in a situation where people have a lot of money. But if the interest rate is lowered in a situation where people have no money, where will they get the money to borrow? We may have to sit down and see what the real logic is.” As for whether the governor of the Bank of Thailand will be aware of and acknowledge the entire situation, Mr. Pichai said that people understand the situation. To talk about this, we have to listen to debtors and loan seekers and what they think. If we talk about stability, we have to listen to financial institutions. Therefore, when talking about interest rates, we have to look at who is affected by the lower interest rate. Therefore, I believe that if the interest rate is lowered, the situation will improve. All in all, I believe that if we look at it together, we should see something that is in line. While Mr. Pao Bhum emphasized that Thailand’s inflation rate is currently lower than the projected frame and there is no tendency to enter the frame in the near future, and the exchange rate is still considered better than our neighbors. As for who will see whether the policy interest rate is appropriate, we have to look at the economic growth, which is currently too low. Therefore, we have to step on the gas pedal by paying more than a hundred billion baht into the economic system. In the current situation of many countries around the world, interest rates have been reduced. Therefore, national policies must inevitably be consistent with the monetary policies of trading partners. Follow more great content like this on Facebook: https://www.facebook.com/innnews.co.th
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