Dr. Kirida Bhaopichitr from the Thailand Development Research Institute (TDRI) says that a policy rate cut by the end of this year could help to stimulate the Thai economy, which has not performed well this year.
“As economic growth in Thailand is not picking up, a reduction in the policy rate of 25 basis points could bolster economic growth. Inflation will not increase significantly, even if the authority cuts the rate, since the inflation has been tightly controlled,” Dr. Kirida says.
According to her, the Bank of Thailand’s primary role is to slow the appreciation of Thai baht, but that the market will determine the rate, depending on the global economy.
The Thai baht has increased to 32.60 baht against the US dollar from a recent low of about 37 baht. However, Dr. Kirida adds that there is an annual cycle in the Thai baht’s value, with the Thai currency strengthening in the last quarter of each year.
Read the full article by clicking HERE.
