Bank of Thailand (BoT) Deputy Governor Bandid Nijathaworn said that the
country’s ongoing political rallies had not yet affected the money market,
the secondary market, and currency exchange rates.
He said the markets are functioning normally with price
movements reflecting the secure economic fundamentals of the Thai economy.
However, he allowed the rallies had impacted tourism and
consumer spending, as well as confidence. It needs be closely monitored how
the rallies will develop.
He said the political challenges would be discussed at
the Monetary Policy Committee (MPC) meeting to be held April 21.
Bandid indicated that the Thai economy had recovered due
to increased exports and global economic resilience. Under the
circumstances, it is necessary to adopt a low interest policy, he said.
Some in the money market began to project MPC would raise
the policy interest rate sooner than expected following the decision by
central banks in many countries to push up the interest rates.
At present, he said, the actual interest rate stays at
2.8 percent, the lowest in Asia. So, the MPC will consider raising the
interest rate at an appropriate time based on the latest economic data.
Regarding capital inflow, Bandit warned investors to make
their investment decisions with greater caution because capital inflow
remains volatile. (TNA)
