US recovery to continue: BOT
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The US economy should stage continued recovery, with limited chance for any worsening, said Bank of Thailand Senior Director for International Department, Parisun Chantanahom.
He referred to the 1.7 per cent growth rate in the second quarter, which is higher than market expectation. This followed the 1.1 per cent growth in the first quarter.
The Fed policymakers however appeared a little less optimistic about the economy than they were at their June 18-19 meeting.
Wrapping up a two-day policy meeting on July 31, the Federal Open Market Committee (FOMC) said it would continue to buy $85 billion in bonds per month to help tamp down longer term interest rates that have been supporting the economy, and especially the housing market recovery.
The Federal Reserve stopped short of signaling any timetable Wednesday for slowing its bond buying. Instead, it dropped hints that it might need to maintain its $85 billion a month in bond purchases, which have helped keep long-term borrowing rates ultra-low.
To Parisun, the wording sends no signal when the QE tapering will start.
"The Fed tries to persuade the markets to look at the long-term picture. It might not want markets to look at figures at hands or interpret when the QE would be terminated," he said.
