‘Magic’ urgently discusses. ‘Bank of Thailand’ blocks weak baht, keeps an eye on 3 factors that raise interest rates, the baht touches 37.15 baht per dollar after the Fed raised interest rates by 0.75%, upsetting the world stock exchanges
Mr. Arkhom Termpittayapaisith Minister of Finance revealed that on the morning of September 22 there was a discussion with the Bank of Thailand (BOT) to monitor the fluctuation of exchange rates. and a 0.75% increase in the US Federal Reserve (Fed) official interest rate, as expected by the market. to curb the fervor of US economic growth The Fed has aimed to raise the official rate by 4-4.5%, so now many countries, including Thailand, have yet to follow up on the last 2 interest rate hikes. How will it affect the US economy? And how will it affect Thailand?
Mr Arkhom said this during discussions with the Bank of Thailand. He attached importance to 3 main factors when considering whether or not to raise the official interest rate in Thailand: 1. Inflation You will have to see how much the increase in interest rates will affect inflation and what is necessary. 2. The expansion of the economy The Bank of Thailand must be confident that the Thai economy will recover normally and 3. Capital flows There have been some capital outflows in the past. But still not considered abnormal. The Bank of Thailand has closely monitored
“Three factors are inflation, economic recovery. and the movement of capital What weight will be given more weight? It is up to the Monetary Policy Committee (MPC) and the Bank of Thailand to take them into consideration. that both the Treasury and the Bank of Thailand closely monitored the situation. If the situation is very unstable, the Bank of Thailand will take care of it, “said Arkhom.
Mr. Poon Panichpiboon, money market strategist, Krungthai GLOBAL MARKETS, Krung Thai Bank revealed that the baht opened this morning at 37.25 baht per USD. It depreciated from the previous day’s close to 37.15 baht per USD. Looking at the baht frame today It should be at the level of 37.15-37.40 baht per US dollar.
while the US financial market continues to be in a closing position After the Federal Reserve (Fed) raised interest rates to 0.75% as expected, but the new interest rate expectations reflect that it will continue to accelerate interest rates interest rates at 4.40% this year and could accelerate interest rates to 4.60% next year, keeping interest rates high until 2023 to successfully control inflation. Contrary to what market participants expect, the Fed may gradually reduce interest rates somewhat over the next year.
Regarding the trend of the baht, there is still the possibility to swing on the weak side, following the direction of the US dollar. Including the climate closed to financial market risks This could see the selling pressure of Thai equities by foreign investors today. It can lead some players to buy gold and oil in a short time. Such transaction flows could also put pressure on the weaker baht.
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