The Bank of Thailand has signalled its readiness to reduce the policy interest rate but a decision on the matter will be made after the National Economic and Social Development Board announces the country’s third quarter economic condition in mid-November.
Bank of Thailand Governor Tarisa Watanagase stated that the agency will lower the interest rate if the economic indicators are negative because the country is facing risks to economic expansion despite the fact that inflationary pressure has reduced.
Tarisa reiterated that the meeting of the Monetary Policy Committee remains unchanged, so the panel will decide on the interest rate movement on December 3. (TOC)
That’s the good point with the BOT : they follow, quietly, like a metronome, like a good dog.
It’s printed : GDP for Q3 will be bad (= enough to justify a rate cut without loosing face). It’s a certainty. See you november 24.
Repurchase rate is currently at 3,75 % (BOT increased end of august, from 3,50).
The entire world has started an inane run toward zero interest rates, free money, to “save the global economy”, to curb the “global crisis”. All the central banks are on this path. Just the pace can be different here or there.
So why not the BOT ? Indeed.
So let’s cut. Yeah, let’s cut.
It will have zero effect, it won’t motivate depressed businesses or individuals to invest more, to buy more… but cut, cut, cut we need to cut. The politicians will be happy…
In Cut We Believe. Yes We Can (cut). 😉
[I invite you to read this superb piece by the guru Mike Shedlock : inflation, stagflation, desinflation, deflation :]
UPDATE NOVEMBER 12
The Bank of Thailand (BoT) has no plans to hold an urgent meeting to handle the financial crisis but is ready to loosen up the interest rate, BoT deputy governor Atchana Waiquamdee said on Wednesday. (Bangkok Post)
UPDATE NOVEMBER 18
Another hint. She should have already the figures for GDP Q3 (publication on november 24)… Therefore : less than expected and interest rates cut scheduled for december 3.
The Bank of Thailand (BoT) will likely adjust its economic forecast and key economic indicators and cut the policy interest rate because of the grave global economic crisis, BoT governor Tarisa Watanagase said on Tuesday. (Bangkok Post)