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  • The week ending March 18th, 2022 the Thai Baht was being exchanged at 32.84 baht to every 1 US dollar.


    • Thailand’s regional trade up 9.49% in Jan despite China’s zero-Covid policy

    Total trade with neighbouring countries, including cross-border trade in January came in at 141.07 billion baht, up 9.49 per cent year on year, the Commerce Ministry reported on Monday.

    However, Commerce Minister Jurin Laksanawisit said he has asked the Agriculture and Foreign ministries to follow up on fruit exports to China.

    He said China is a large market for Thai fruits, but its zero-Covid policy is far too strict, especially in terms of land transportation.

    “Apart from implementing strict measures before closing containers, we have also asked for a special route to be set up to move Thai fruits to China. The Agriculture and Cooperatives Ministry will be responsible for this issue,” he said.

    “The Commerce Ministry, meanwhile, will implement proactive measures to manage fruit supply this year.”

    Jurin added that his ministry will accelerate the reopening of borders and will negotiate new routes for trade.

    “The China-Laos railway will serve as another route for Thai exports in the future,” he said.

    Thailand’s trade with neighbouring countries in January came in as follows:

    Malaysia: 30.54 billion baht, up 14.26%

    Cambodia: 17.76 billion baht, up 17.94%

    Laos: 23.45 billion baht, up 39.86%

    Myanmar: 18.60 billion baht, up 36.26%

    Singapore: 10.27 billion baht, up 26.05%

    Vietnam: 8.06 billion baht, up 36.19%

    China: 16.98 billion baht, down 24.34%
    https://www.nationthailand.com/business/40013386
    • Southeast Insurance, Thai Insurance ordered to suspend non-life policy sales

    The Office of Insurance Commission (OIC) has ordered two insurance firms, Southeast Insurance and Thai Insurance, to temporarily suspend the sale of their non-life policies.

    Secretary-general Suttipol Taweechaikarn said on Thursday the OIC board had set conditions the two firms must comply with.

    The firms had repeatedly said they would comply with Section 57 of the Insurance Act before ceasing operations. They had proposed that customers receive refunds for insurance coverage against Covid-19 infections and cancel insurance policies on a voluntarily basis

    However, the two firms had only partially carried out what they proposed. Their plans to transfer insurance policies to other firms were not yet completed. This caused many customers to file complaints with Southeast Insurance and Thai Insurance over payment delays, the OIC secretary-general said.

    The OIC had closely monitored the financial status of the two firms and had several meetings with representatives of both companies. The commission found their financial positions were unstable with liabilities in excess of assets.

    Allocating reserves under Section 23 and allocating of assets under Section 27/4 failed to meet legal requirements. There were insufficient assets to cover claims.

    To prevent damage to customers and the public, the registrar had ordered Southeast Insurance and Thai Insurance to take the following steps:

    - Temporarily suspend non-life insurance;

    - Take action to ensure adequate finance to meet obligations and a sufficient ratio of capital funding as set by law within 30 days from the date of receiving the order;

    - Urgently proceed with the authorized sale of assets under conditions set by the registrar. The firms must use money from the sale of assets to repay insured persons or those who are covered under insurance policies. The firms must keep documents about the payments for authorities to examine;

    - Open offices people can contact every day, according to the OIC’s announcement, and arrange sufficient staff to handle claims;

    - Accelerate the examination of insurance claims and keep records of the claims in the registration book as soon as possible and within the timeframe;

    - Prepare a report on the insurance policies as stated in the conditions;

    - Make a record of entries in the registration and account books and maintain insurance reserves according to the law;

    - Accelerate insurance payments to injured people or those who have the right under the insurance policies, within the timeframe; and

    - Report on the progress of their work until further notice is made.

    Southeast Insurance and Thai Insurance are controlled by SET-listed Thai Group Holdings, the insurance arm of Thai Charoen Corporation Group controlled by tycoon Charoen Sirivadhanabhakdi. In January, both insurance companies sought to cease operations of their non-life divisions, saying they could no longer cover mounting costs related to Covid-19 claims by policyholders.

    Mr Charoen built a 516-billion-baht fortune mostly from liquor and retailing. https://www.bangkokpost.com/business...e-policy-sales

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    • Economy may grow 3.0-3.5% this year – Arkhom

      Thailand's economy could grow 3.0%-3.5% this year, less than an earlier forecast due to soaring oil prices driven by the Russia-Ukraine war, and the key interest rate should remain low to underpin recovery, the finance minister said on Monday.

      Southeast Asia's second-largest economy will, however, be supported by strong exports, which could grow 5%-6% this year, and by improved tourism as the government plans to ease more pandemic-related curbs, Arkhom Termpittayapaisith told Reuters in an interview.

      "Growth of 3.0%-3.5% should be achievable this year, and 2023 should be better", as several government infrastructure projects will be completed, he said.

      In February, the state planning agency predicted the economy would grow 3.5%-4.5% this year, after expanding just 1.6% last year, among the slowest rates in the region.

      The economy is also expected to grow in the first quarter both on the year and on the quarter, Arkhom said.

      Monetary policy should continue to support the recovery as the government tries to manage higher inflation, which is expected to be 3%-4% on average this year, slightly above the central bank's 1%-3% target range, he said.

      "On the monetary side, don't raise rates too soon," he said, referring to the central bank.

      The central bank has left its key interest rate at a record low of 0.50% since May 2020 to maintain support for the economy. It is expected to keep policy unchanged when it meets on Wednesday.

      The current level of the baht is "appropriate" and supports exports, Arkhom said.

      "The baht may swing, but at 33 baht per dollar, everyone should be happy".

      The government has sufficient funds to help the economy and there was no need for further borrowing yet, he said. https://www.bangkokpost.com/business...is-year-arkhom

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      • Siam Commercial Bank catches the metaverse bug

        Thailand’s biggest bank by market value has become the latest lender seeking to capitalize on the metaverse craze, with a unit announcing plans to set up a headquarters in a version of the internet that’s still taking shape.

        SCB 10X Co, which oversees Siam Commercial Bank’s investments in technology startups, will become the first banking group entity globally to develop a headquarters in The Sandbox, a blockchain-based virtual platform, it said in a statement on Monday. The virtual space will be ready for public visits by the fourth quarter of this year, it said. SCB 10X’s physical head office is in Bangkok.

        Siam Commercial joins HSBC Holdings and JPMorgan Chase in foraying into the metaverse. Yet it’s far from clear what tangible benefits will come from setting up shop in the metaverse, which proponents envision as a more immersive version of the internet, suited for accessing through virtual or augmented reality goggles.

        SCB 10X’s virtual headquarters will comprise three utility zones, including a space for business partners to collaborate on activities and projects and a hub for supporting local artists through a non-fungible token marketplace and gallery, it said.

        Siam Commercial founded SCB 10X in 2020 with what it called “the moonshot mission” of boosting growth through technology innovations and investments, according to its website. https://www.bangkokpost.com/business...-metaverse-bug

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        • The week ending April 1st, 2022 the Thai Baht was being exchanged at 32.95 baht to every 1 US dollar.


          • Bank of Thailand holds key interest rate at record low

          The Bank of Thailand left its key interest rate unchanged on Wednesday, as expected, maintaining support for a fragile economic recovery facing global risks.

          The BoT's seve-member Monetary Policy Committee unanimously voted to hold the one-day repurchase rate at 0.50%, where it has been since May 2020, for a 15th straight meeting.

          All 22 economists in a Reuters poll had expected the committee to stay on hold. https://www.bangkokpost.com/business...-at-record-low
          • Property sector starting to recover – Arkhom

          Thailand's property sector is starting to recover after two years of a slowdown due to the coronavirus pandemic, Finance Minister Arkhom Termpittayapaisith said on Thursday.

          The state housing bank will continue to keep interest rates low to help demand, Mr Arkhom told a business seminar.

          The government will also manage cost-driven inflation led by rising oil prices. https://www.bangkokpost.com/property...recover-arkhom

          Thai auto exports down 2.8% as chip shortage hits production capacity

          Thailand exported 149,284 cars in the first two months this year, down 2.8 per cent year on year due to a microchip shortage, the Federation of Thai Industries (FTI) reports.

          The prolonged Russia-Ukraine conflict will exacerbate shortages in microchips and auto parts as Russia has halted exports of nickel, palladium and other raw-material metals, said Surapong Paisitpattanapong, FTI vice president and auto chapter chief.

          Also, western countries were boycotting goods from Russia, he added.

          The chip shortage came after Covid-19 sparked rising demand for electronic devices, Surapong explained.

          "It will take two years for microchip manufacturers to expand production, so we expect the shortage to be resolved in 2024."

          Thai auto exports down 2.8% as chip shortage hits production capacity

          The FTI forecasts Thai car exports in the first quarter and first half of this year will drop, Surapong said.

          However, the FTI has retained its 2022 export target of 1 million cars compared to 950,000 last year. Thailand’s car production has dropped from 170,000 per month to 150,000 per month, he said.

          The FTI was monitoring the Russia-Ukraine conflict's impact on the economy and trade, as well as the impact of rising inflation on daily living costs, he added. https://www.nationthailand.com/business/40014120

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          • Growth outlook darkens

            Thailand's economy is expected to grow by 2.9% this year, down from a previous prediction of 3.9%, the World Bank said on Tuesday.

            Warunthorn Puthong, an economist at the World Bank, said the downgrade was mainly due to external risk factors such as the Russia-Ukraine war, which has sent domestic energy prices soaring.

            The energy factor has pushed up costs and affected private consumption in the country. The rising price of global energy, which has pressured the world's economic expansion, could also impact Thailand's exports, Ms Warunthorn said.

            However, the World Bank believes the Thai economy is on the path to recovery this year. Positive factors include the country's reopening and the easing of pandemic restrictions.

            The World Bank expects 6.2 million foreign tourists to visit Thailand this year, she said.

            If the impact of the war in Ukraine becomes more severe for Thailand, the economy might expand by only 2.6%, Ms Warunthorn said.

            The Thai economy expanded by 1.6% in 2021, following a contraction of 6.2% in 2020.

            The war in Ukraine threatens an uneven recovery for developing East Asia and Pacific (EAP) countries, the World Bank said.

            The war comes as the region is recovering from the economic distress caused by the lingering pandemic, financial tightening in the US, and the resurgence of Covid-19 infections in China.

            Shocks emanating from the war in Ukraine and the sanctions on Russia are disrupting the supply of commodities, increasing financial stress, and dampening global growth, according to a report titled "World Bank East Asia and Pacific Economic Update April 2022: Braving the Storms".

            Countries in the region that are large importers of fuel (Mongolia and Thailand) and food (the Pacific Islands) are seeing a decline in real incomes. Countries with large debts (Laos and Mongolia) or a high dependence on exports (Malaysia and Vietnam) are susceptible to global financial and growth shocks, according to the report.

            "Just as the economies of East Asia and the Pacific were recovering from the pandemic-induced shock, the war in Ukraine is weighing on growth momentum," said Manuela V. Ferro, World Bank vice-president for EAP.

            "The region's largely strong fundamentals and sound policies should help it weather these storms."

            The EAP region is projected to grow by 5% this year, down from a 5.4% projection last October. Expansion could slow to 4% if global conditions worsen and national policy responses are weak. https://www.bangkokpost.com/business...utlook-darkens

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            • Thai export growth slowing under Russia-Ukraine fallout: TNSC

              The Russia-Ukraine conflict and rising production costs are pressuring Thailand's export sector, the Thai National Shippers' Council (TNSC) reports.

              Thailand's export value in the first two months this year was US$44.74 billion, up 12.2 per cent year on year, The TNSC said on Saturday.

              Exports were worth $21.25 billion in January and $23.48 billion in February, up 8 per cent and 16.2 per cent, respectively.

              TNSC chairman Chaichan Charoensuk said January-February exports expanded strongly on orders made before Russia invaded Ukraine on February 24.

              He expects Thai exports in the first quarter to expand around 5 per cent year on year before falling below 5 per cent in the second quarter under pressure from the Russia-Ukraine conflict and the resulting rise in production costs.

              "The price of Thai export goods has increased by 5-10 per cent," he added.

              The TNSC, trade associations and industries concluded on March 25 that the war would drag on and continue to drive up prices of raw materials, Chaichan said.

              Russia's ban on exports of crude oil, natural gas and rare minerals, as well as economic sanctions on Moscow, were affecting many industries, he added.

              However, five major Thai exports – rubber and rubber products, foods, cassava products, sugar and rice – would help lift revenue amid the Russia-Ukraine crisis.

              "Meanwhile, tyres, textiles, auto parts, plastic beads and electrical appliances will also boost Thai exports," he added.

              Chaichan warned, however, that the microchip shortage in the automobile industry should be tackled urgently as Russia's ban on exports of chip materials would exacerbate the issue.

              TNSC cut its forecast for Thailand's export growth this year from 5-8 per cent to no more than 5 per cent. Thai exports would drop further if the Russia-Ukraine war drags on and sparks further inflation and contraction of the global economy, Chaichan added. https://www.nationthailand.com/business/40014121

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              • The week ending April 8th, 2022 the Thai Baht was being exchanged at 32.95 baht to every 1 US dollar.


                • SET's new platform to facilitate traditional and digital asset trading

                The Stock Exchange of Thailand is keeping pace with changing times by allowing the digital asset market to be in lockstep with the traditional capital market so they can have parallel growth, making it easier for all groups of investors.

                The SET plans to launch this year "Live Exchange", a funding platform for small and medium-sized enterprises (SMEs) and startups, as well as facilitate the expansion and easier access to both investment and utility tokens.

                The Thai Digital Assets Exchange (TDX) will offer more flexibility to all groups of investors to facilitate investing in both traditional capital and digital markets, allowing a range of options to invest and raise capital.

                Speaking at the forum: "The New Paradigm Shift Of The Financial World", hosted by The Nation and Asia News Network on March 30, the president of the Stock Exchange of Thailand, Pakorn Peetathawatchai, shared the goal of evolving and connecting the capital market and digital asset market to ensure growth and sustainability for both business and society.

                Offering an overview of the market, he said in 2021, the Thai capital market had continued to grow and was the 7th biggest in Asia and 18th in the world in market cap. He said the Thai capital market has been the biggest in Asean for almost a decade.

                The SET estimates the key developments in the Thai capital market through three strategies: market growth; infrastructure expansion, environmental solution and social development.

                The SET wants to make the capital market more accessible by simplifying the procedures for opening new trading accounts, encouraging retail investors to use a digital platform for trading, and attracting young investors.

                He said the SET is going to offer an open platform, but he made it clear that they will not touch crypto. He made the point that most of the digital asset trading as of now revolves around cryptocurrency. The TDX platform would be launched in the third quarter this year including the investment and utility tokens, he said.

                Fundraising through tokenisation is now a global trend. Also, many features for investors are available according to their needs, while upholding investor protection measures. Investors can improve token liquidity by trading in the secondary digital asset exchange. Most digital asset exchanges are open 24/7. The settlement cycle is extremely fast compared with the traditional type. So, tokenisation can solve the problem for retail investors as it involves lower cost and offers more liquidity. As a result investors have more chances to make higher profit, he said.

                All investments carry risks, and there are pros and cons in both the traditional and digital markets. The SET has an important role of setting strict criteria for investors. All protocols are only part of measures to protect the sector against scammers and confusing information. Hence, the Thai SET plans all strategies to generate the most benefit to investors, he said. https://www.nationthailand.com/business/40014166
                • Business group trims 2022 growth outlook over Ukraine war

                Thailand's leading joint business group on Tuesday trimmed its economic growth forecast for this year due to the impact of the Russia-Ukraine war on global growth and energy prices.

                The Joint Standing Committee on Commerce, Industry and Banking trimmed the economic growth forecast to 2.5% to 4% from a previous forecast of 2.5% to 4.5%.

                Their inflation forecast was raised to 3.5% to 5.5% this year from a previous projection of 2% to 3%, it said in a statement. It maintained its export growth outlook of 3%-5% this year.

                On Tuesday, the Thai National Shippers' Council (TNSC) reported that the country's exports are expected to rise by 5% this year, compared with a previous forecast of 5% to 8% growth, due to uncertainty over the Russia-Ukraine war.

                According to TNSC's forecast, exports would increase by 8% in the first quarter from a year earlier and by 2% to 4% in the second quarter. In the whole of 2021, exports jumped 17.1%. https://www.bangkokpost.com/business...er-ukraine-war
                • March inflation beats forecast, still at 13-year high

                Headline consumer price index (CPI) jumped by a higher-than-expected 5.73% in March from a year earlier, the fastest pace in 13 years, driven by stronger prices of goods and energy, the Commerce Ministry said on Tuesday.

                That compared with a forecast for a rise of 5.60% in a Reuters poll and followed February's 5.28% increase, breaching the top end of the Bank of Thailand's target range of 1% to 3% for a third straight month.

                The ministry raised its forecast for headline inflation to 4% to 5% this year from a previous estimate of 0.7% to 2.4%, Ronnarong Phoolpipat, director-general of the Trade Policy and Strategy Office, told a news conference. In 2008, inflation was 5.5%.

                Government measures including price controls on essential goods, a cap on fuel prices and subsidies would help slow a rise in inflation, he said.

                "Policymakers viewed that the current high inflation must be closely monitored, but it's not so worrying that further measures would be needed," Mr Ronnarong said.

                The central bank last week raised its 2022 headline inflation outlook to 4.9% from a previous forecast of 1.7%, noting supply-driven inflation should be temporary.

                In March, the core CPI index, which strips out volatile fresh food and energy prices, was up 2% from a year earlier, also beating a forecast for a 1.80% rise.

                In the January-March period, headline inflation was 4.75%, with the core rate at 1.43%. https://www.bangkokpost.com/business...t-13-year-high
                • Thailand’s banks try to find their feet in fast-changing world

                Thailand’s banking industry has waded through many economic crises in the last few decades, the latest being the COVID-19 pandemic. Despite their preparedness, new risks and challenges continue to test the banks’ resilience.

                Banks and other types of financial institutions that survived the 1997 Asian financial crisis have become stronger. The industry, as well as Thailand’s economy, was not much impacted by the global financial crisis in 2008. They are being tested again, by the persisting COVID pandemic and the fallout of Russia’s invasion of Ukraine.

                A bank-based economy

                Banks play a crucial role in Thailand’s economy, which is labeled a bank-based economy. Financial institutions have served both depositors and borrowers, fuelling economic growth. A bank-based economy is different from capital-based economies, such as the United States, where businesses largely raise funds via the capital market—the stock market.

                The Bank of Thailand (BOT), which supervises banks operating in the country, recently launched a so-called “financial landscape consultative paper”, on consulting with stakeholders about how to deepen financial sector reform.

                Four banks downgraded

                The BOT move coincided with S&P Global Ratings last month downgrading the credit rating of four banks — Kasikornbank and Siam Commercial Bank to BBB from BBB+, and Krungthai Bank and TMBThanachart Bank to BBB- from BBB.

                The international rating agency raised concerns over the quality of loan portfolios, as many businesses and individual borrowers are hurt badly by the impact of lockdown measures both in Thailand and overseas aimed at containing the pandemic.

                Fintech disruption

                In recent years, banks have also been facing technology disruption, leading to the entry of new competitors and new kinds of services.

                “The challenge for banks is how to deal with rapid changes in technology,” said Chaiyawat Wibulswasdi, former BOT governor. He was referring to financial technology and the emergence of cryptocurrency and other types of digital assets.

                BOT assistant governor Roong Mallikamas, however, said that Thai banks have done quite well in terms of adjusting to fast changes in technology, as they have invested in information technology and built a strong IT infrastructure. They also took over financial technology companies or launched joint ventures with startups, as banks have to fight with new competitors, especially outsiders stepping into their turf of payment businesses.

                Recognizing their performance in this area, the central bank recently lifted a limit on technology investment at 3 percent of capital.

                Online banking a success

                Thai banks have benefited from the central bank launching PromptPay infrastructure, facilitating consumers and businesses to make financial transactions via online banking services such as QR code, and phone number windows.

                “Online banking services have yielded huge cost savings for banks, as it is much cheaper to provide online service than meet face-to-face at bank branches,” said Veerathai Santipraphob, former BOT governor. This has enabled them to lower their service fee for customers, he said.

                Bank-customer relations

                During Veerathai’s tenure, bank customers often complained about bank staff, at their counters, trying hard to sell them unwanted insurance policies. So the central bank had to step in and ask the banks to drop such a sales strategy, according to Veerathai.

                Yet, technology also brings cyber-risks. Many credit card and debit cardholders last year experienced online fraud and saw money disappear from their accounts without their approval. In recent years, many customers have expressed disappointment that banks have been slow in compensating them.

                Digital assets

                With the emergence of digital assets, such as cryptocurrency, several Thai banks have invested in digital asset exchanges, hoping to profit from the popularity of crypto trade among local investors.

                But as digital assets are also associated with risks to individual investors and financial stability, the BOT and the Securities and Exchange Commission (SEC) have imposed strict rules governing digital businesses.

                The BOT has limited banks’ investment in digital assets at not more than 3 percent of capital. Cryptocurrency has been barred from being used as a means of payment for goods and services.

                The central bank is also looking to further liberalize the financial market.

                The BOT aims to give licenses to virtual banks this year. The virtual bank does not have a physical office, as its operations and services are online. Deploying cutting-edge technology, this kind of bank will employ few staff and they could provide cheaper and faster lending services. Some banks currently have introduced AI to make some lending, as they try to take advantage of new technology and compete with potential new competitors.

                How strong are banks?

                The S&P Global Ratings lowered the ratings of four Thai commercial banks while maintaining the ratings for the other two banks—Bangkok Bank and Bank of Ayudhya. The rating agency pointed to the buildup of fragility from increasing household debts and the higher number of debtors due to regulatory treatment which enabled Thai banks to provide more financial assistance to debtors compared to other countries.

                In addition, the fragile recovery especially in the tourism sector, as well as the potential adverse impact of the Russia-Ukraine tensions, could impact bank loan quality going forward. Nonetheless, S&P noted that the outlook on these banks are stable given that they are well-capitalized with high levels of loan-loss provision.

                In response to S&P’s concerns, BOT deputy governor Ronadol Numnonda, who is in charge of financial institutions’ stability, argued that the BOT has implemented several measures to encourage banks to continually assist affected debtors in order to facilitate their post-COVID recovery.

                By the end of 2021, the number of debtors under the financial assistance program stood at 14 percent of total loans – a significant reduction from the peak of 30 percent in July 2020 during the surge of the COVID-19 outbreak in Thailand. Since then, it has been evident that debtors who had exited the financial assistance program have regained their debt serviceability.

                He assured that currently the financial positions of the Thai banking system remain resilient with high buffer levels. The Capital Adequacy Ratio (BIS ratio) stands at 20 percent and provisioning has increased by Bt430 billion during 2020-21. This reflects banks’ vigilance against the backdrop of heightened uncertainties. Provisioning of Bt890 billion in the banking system is equivalent to 1.6 times of non-performing loans, he said.

                Moreover, the BOT has required regular stress tests on banks’ capitals (2021-23) and found that the Thai banking system remained resilient and would be able to withstand future risks and uncertainties. Going forward, the continued recovery of the Thai economy will help improve the income and debt serviceability of borrowers as well as the loan quality of banks, added Ronadol.

                Protecting consumers

                Starting from April, the BOT has introduced a new benchmark for banks and other types of financial institutions to practice in order to treat clients fairly when it comes to service charges, fees, interest, and fines. Banks are required to disclose this information to clients. Banks have to return the fee charged to ATM card and debit cardholders if customers cancel those cards before their expiration date. Banks are not allowed to collect a fee based on the percentage of loans from borrowers for collateral appraisal services. https://www.thaipbsworld.com/thailan...hanging-world/



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                • good to see the bath close to 33 baht per 1 US dollar
                  Keep your friends close and your enemies closer

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                  • yesterday it was at 33.18 baht to one US dollar
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                    • still 33.18
                      Keep your friends close and your enemies closer

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                      • The short holiday week ending April 12th, 2022 the Thai Baht was being exchanged at 33.18 baht to every 1 US dollar.


                        • Economy to continue recovery, but risks increase - BoT minutes

                        The economy will continue to recover, driven by improving local demand and foreign tourist numbers, as recent negative shocks have had a limited impact on recovery, according to minutes of the Bank of Thailand (BoT)'s last policy meeting.

                        Downside risks to short-term growth increased, however, as there could be prolonged shortages of some raw materials while households and businesses could be affected by higher costs, the minutes released on Tuesday said.

                        On March 30, the BoT's Monetary Policy Committee unanimously voted to leave the benchmark interest rate at a record low of 0.50%, where it has been since May 2020, maintaining support for growth. Its next policy review is in June, and most economists expect no policy change through this year.

                        The BoT forecasts economic growth of 3.2% this year and 4.4% next year, with foreign tourists at 5.6 million and 19 million, respectively. It predicted inflation at 4.9% this year, exceeding its target range of 1-3%, before slowing to 1.7% next year.

                        Medium-term inflation expectations remained within the target range while inflation pass-through to wage was assessed to be limited due to a fragile recovery in the labour market and an uneven recovery across industries, the minutes said.

                        "Employment remained lower than the pre-pandemic level and might recover more slowly than in past crises," they said.

                        While the committee continued to focus on growth, it should reassess the balance of risks in the period ahead "when the robust economic recovery resumed and the associated risks subsided", the minutes said.

                        On future policy tightening, Governor Sethaput Suthiwartnarueput told Reuters on Monday the BoT would watch for signs of "deviation from the expected recovery" such as second-round effects on prices and unanchored inflation expectations. https://www.bangkokpost.com/business...se-bot-minutes


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