As Political Crisis Continues The Bank of Thailand Consider a Rate Cut

The case for a cut: Inflation is benign and with political turmoil hurting confidence and threatening to derail a generally resilient economy, the central bank should seize the opportunity and act now, some economists say.

The case against: Interest rates were cut twice last year, lending the economy some support and further easing could exacerbate the outflow of foreign cash if jitters about Federal Reserve tapering return to emerging markets, others argue.

“It’s certainly looking like there’s a pretty good chance of a rate cut this week,” said Sean Callow, senior currency strategist at Westpac Bank in Sydney. “They [Thai central bankers] have in the past placed some weight on political instability and the damage it can cause the economy.”

via To cut or not cut? Thailand mulls rate move

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza