Thailand in Focus :: Baht weaker but stable after rate cut
Thailand in Focus :: Baht weaker but stable after rate cut
17/03/2015
The Bank of Thaland's 25-basis-point cut in the policy interest rate last week has depreciated the value of the baht by 0.5 per cent and taken the government bond yield curve to the lowest point in six years.
The baht weakened from around 32.30 to nearly 33 against the US dollar after the BOT's Monetary Policy Committee (MPC) cut the benchmark rate from 2 per cent to 1.75 per cent. "The baht depreciated because the majority of the market believed that the MPC would maintain the policy interest rate," said BOT spokesman Chirathep Senivongs Na Ayudhya. "But the currency has stabilised now and there is currently no irregularity regarding fund flows ahead of the US Federal Reserve's statement this week."
Credit and view full story at The Nation
