Money, secondary, and exchange markets still unaffected by rallies: BoT

BANGKOK, March 27 (TNA) – 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.

Mr 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 per cent in negative territory, 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, Mr Bandit said, foreign funds had flowed into all countries in Asia for returns on investment.

He warned investors to make their investment decisions with greater caution because capital inflow remains volatile. (TNA)