Cash flight expected: BOT chief
Some money flowed out of the stock and bond markets recently due to interest rate rises in global markets, but is not a big concern, central bank governor Veerathai Santiprabhob said on Friday.
The markets have expected global interest rates to rise this year as major central banks normalise their ultra-low interest rates, Veerathai said in response to rising yields of the US Treasury on Thailand‘s financial market.
There is also a plenty of liquidity in the Thai market, he said.
Regarding the strength of Thai banks, he said he did not worry about their ability to repay their foreign loans. It is the normal way they manage their assets by borrowing foreign funds to finance foreign direct investment projects made by Thai companies.
Moreover, global interest rates are unlikely to increase much, he added.
