Finance calls for interest rate cut to prevent foreign capital influx

Published on February 6, 2013 by TFP   ·   No Comments

BANGKOK, 6 February 2013 (NNT) â€" The Finance Ministry is in favor of calls for an interest rate cut in order to prevent an influx of foreign capital into Thailand.

Deputy Prime Minister and Finance Minister Kittiratt Na-Ranong said on Tuesday that his recent sending of a letter to the Bank of Thailand (BoT) Chairman Virabongsa Ramangkura to suggest the Monetary Policy Committee to cut the policy interest rate was an act of concern.

With the central bank in his charge, Mr. Kittiratt said that he has been sending a signal to the MPC in many occasions that the country’s interest rate should be lowered.

He stated that Thailand’s high rate has been drawing more foreign funds into local securities but not into the economy.

The Finance Minister said that while Thai economy is going strong, with the export sector on a rise, foreign investors are being more confident and continuing to make more investment in Thailand.

Still, he warned that foreign capital influx could be aiming for speculative trade only.

Mr. Kittiratt stressed that, in order to prevent any undesirable circumstances and saving the BoT from losing too much money, a rate cut is now imminent, especially when the baht remains volatile.

( Nopparat Chaichalearmmongkol Nopparat Chaichalearmmongkol)

nbsp

nbsp

nbsp

Article source: http://www.thethailandlinks.com/2013/02/06/finance-calls-for-interest-rate-cut-to-prevent-foreign-capital-influx/