BOT Governor flip flops

Well then, first on the 14th of this month the BOT Governor comes out publicly saying

“Thailand doesn’t need an interest- rate cut as credit growth is accelerating and domestic demand is countering a slowdown in exports, central bank Governor Prasarn Trairatvorakul said.”

Source: Bloomberg

And then on the 18th of this month, the BOT cuts rates from 3% to 2.75%.

“The rate cut yesterday is not a signal that the interest rate is on a downward trend,” Prasarn told reporters today. “Capital flows is not the key reason for the rate cut. The cut is like buying insurance to support local demand, which will act as a buffer for the economy. Still, we should use policy space wisely because there are uncertainties ahead.”

Source: Bloomberg

You absolute flip flopping donkey!

Anyways, impact on stocks? Good for property ST wise, and any other sector that requires significant financing for its customers, so-so for banks as their margins may be depressed.

Disclosure: Please make up your own mind, do your own research and read the Terms & Conditions for the rest of the legal babble. Thank you!

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