‘Magic’ negotiates urgently ‘Bank of Thailand’ blocks weak baht, eyes 3 factors raising interest rates, baht touches 37.15 baht per dollar after Fed hike 0.75% interest rates, stunning world stocks
Arkhom Termpittayapaisith Mr Finance Minister revealed that on the morning of September 22 There was a discussion with the Bank of Thailand (BOT) to monitor the variation in exchange rates. and a 0.75% increase in the US Federal Reserve (Fed) policy interest rate, as the market expected. to curb the enthusiasm of US economic growth The Fed has aimed to raise the policy rate 4-4.5%, so now many countries, including Thailand, still have to follow up on the 2 interest rate increases last How will it affect the US economy? And how will it affect Thailand?
Mr Arkhom said that in discussions with the Bank of Thailand He gave importance to 3 main factors when considering whether to raise the policy interest rate in Thailand or not: 1. Inflation He will have to see to what extent the increase in the interest rate will be affects inflation and how necessary it is. 2. Economic expansion The Bank of Thailand must be confident that the Thai economy will recover normally and 3. Capital outflow In the past, there were some capital outflows. But it is still not considered abnormal. The Bank of Thailand has monitored closely
“Three factors are inflation, economic recovery. and capital movement Which weight will have more weight? It is the duty of the Monetary Policy Committee (MPC) and the Bank of Thailand to decide. The Treasury and the Bank of Thailand have monitored the situation closely. If the situation is very volatile, the Bank of Thailand will take care of it,” Arkhom said.
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. Depreciated from the previous day’s close at 37.15 baht per USD. by looking at the baht frame today It is expected to be at 37.15-37.40 baht per US dollar.
while the US financial market remains in a closed state After the Federal Reserve (Fed) raised interest rates to 0.75% as expected, but new interest rate expectations reflect that it will continue to accelerate interest rates to 4.40 percent this year and may accelerate interest rates to 4.60% next year, while maintaining high interest rates until 2023 to successfully control inflation. Contrary to what the market players expect, the Fed may gradually cut interest rates somewhat next year.
As for the baht trend, there is still an opportunity to fluctuate on the weak side, following the direction of the US dollar. Including the atmosphere closed to the risks of the financial markets This may see the selling pressure of Thai stocks by foreign investors today. It can cause some players to buy gold and oil in a short period of time. Such transaction flows could also put pressure on the weaker baht.