BANGKOK, Sept 5 — The Bank of Thailand (BoT) said Friday Thailand’s economy would be little affected following a cut in interest rates by the European Central Bank (ECB).
BoT spokesman Chirathep Senivongs Na Ayudhya said ECB’s cut in policy interest rate by 0.10 per cent to 0.5 per cent on Thursday and its issuing new stimulus plans showed that Europe is worried that inflation would be too low and the tight money situation could worsen.
He said the cut would help boost investment and consumption in Europe as well as stimulating its economy.
However, BoT is not worried as the cut in rates by ECB would weaken European currencies and in return strength to the US dollar and this would benefit countries which conduct trade with European countries, but not on a full scale due to worries over tensions between Russia and Ukraine, said Mr Chirathep.
On global economic recovery, Mr Chirathep said he believed China’s economy would not turn sluggish although its economy has slowed down while economic potential still exists in Asia.
Mr Chirathep said factors which could impact Thai economy come from within the country rather than overseas.
He suggested that the publlic should monitor the new government’s policy, especially investment by the state.
