Since the inflation has eased yet remains rising, additionally, Russia’s war in Ukraine isn’t impacted much but causing the global uncertainty mentioned by FED. In its Feb. 1 policy decision, the Fed raised the target range for benchmark interest rates by another 0.25%, setting the range at 4.5%-4.75%, the highest since 2007.
With unanimous voting in favor of the rate increase, FED policymakers mentioned in a policy statement that “ongoing increases” in interest rates will likely be appropriate to obtain a monetary policy stance that is “sufficiently restrictive” — in effect countering the recent easing in financial conditions that has resulted from higher stock prices and a moderation in rates for Treasuries and other bonds.
Meanwhile, Thailand’s finance minister, Arkhom Termpittayapaisith, mentioned that Thailand’s interest rate has been reasonably adjusted, and raising too much will sharply drag down the economy which is getting better. Even the private sector said the baht was too strong, “but it’s not very strong,” and “The baht is strengthening on the fundamentals of the economy that has started to recover” he added.
Published 22/02/2023
By Ashley Jones
