It is reported that in the case of continuous fluctuations in the global economy, the Federal Reserve (Fed) decided to cut interest rates by 0.50% to 4.75%-5.00% at its most recent meeting, which has also attracted widespread attention around the world because it is the first interest rate cut in four years.
Recently, Mr. Pichai, Deputy Prime Minister and Minister of Finance of Thailand, emphasized the importance of the country's monetary policy aligned with that of the world's economic superpowers, especially countries such as the United States, which have close ties to the Thailand economy, on the issue of the Fed's interest rate cut. Because the Fed's interest rate hike or rate cut has a direct impact on capital entering Thailand, if the United States raises interest rates, it will lead to the depreciation of the Thai baht, and vice versa, the United States interest rate cut will make the Thai baht stronger.
At present, the Thai baht is showing a strong trend due to various factors, especially the country's economic recovery and the increase in foreign capital inflows. Thailand Securities Brokerage Company (Asia Plus Securities-ASPS) said that interest rate cuts in developed countries and the rapid appreciation of the Thai baht are conducive to establishing financial market stability, but will have an impact on Thailand's exports and become an important factor for the Monetary Policy Committee of the Bank of Thailand to consider cutting interest rates at least once this year, that is, by 0.25%.