What happened this week 29/04/13 – 03/05/13

Thai Economy:

  • MPC prefers policy mix to handle baht — The Bank of Thailand’s Monetary Policy Committee (MPC) has agreed on the need for a timely implementation of appropriate policy mix, to manage the exchange rate. In a statement released today, the MPC said that the policy mix “as warranted by circumstances” will be implemented “in close coordination with the Ministry of Finance and other agencies.” The MPC expressed concern over recent volatility and rapid appreciation of the baht, which, at times, have not been justified by economic fundamentals. The decision was announced after the regular monthly macroeconomic briefing today, where they discussed recent exchange rate developments. (The Nation website, 30/04/13)
  • Private spending as key economic driver in Q1: BoT — The Thai economy stabilized in the first quarter at a level comparable to the previous quarter, having private spending as the key driver, according to the Bank of Thailand. Tourism was buoyant, while merchandise exports gradually recovered in line with a stabilizing global economy. On the stability front, unemployment was kept low, and inflation moderated. The currency appreciated from a surplus in the current account coupled with strong capital inflows in the form of direct investment and debt security investment by non-residents. (The Nation website, 30/04/13) Continue reading What happened this week 29/04/13 – 03/05/13