Thread: Thai Baht Rates .

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Does this take into account the depreciation of the pound?

One possibility.

When potential RE buyers are given a 15% discount, due to currency movement, one assumes it affects their decisions. Some may be buying RE related companies, hence possible upward stock valuations.

Pound drops as Bank of England's
Mark Carney hints at fresh interest rate cuts


Mark Carney, the Bank of England Governor, has hinted at new tools to boost growth

The Bank of England could unleash fresh monetary stimulus this summer in an effort to support the economy after Brexit, Mark Carney has said, in remarks that have been taken as a sign that policymakers are preparing to slash interest rates and release additional waves of QE.

In a speech given at Threadneedle Street, the Governor warned that the referendum result had increased uncertainty about the outlook for the UK economy, given the “major regime shift” that leaving the EU entailed.

Ahead of the vote, Mr Carney said that the monetary policy committee (MPC), which decides on monetary policy, had judged that there would “probably” need to be an increase in rates over the next three years.

However, with the UK now on a path to leaving the EU, Mr Carney said that it was his personal view that “some monetary policy easing will likely be required over the summer”. The pound fell by as much as 1.6pc on the Governor’s signs that fresh monetary easing was on its way, knocking sterling to a daily low of $1.3219.

Experts said that the MPC was likely to make its move in August, after using its July meeting to assess the initial economic impact of the referendum result. Policymakers could choose to introduce interest rate cuts, fresh quantitative easing or alternative forms of stimulus.

The Governor made clear his personal aversion to taking interest rates, currently at 0.5pc, too low. “As we have seen elsewhere, if interest rates are too low - or negative - the hit to bank profitability could perversely reduce credit availability,” he said.

Mr Carney insisted that the MPC would "discuss further the range of instruments at our disposal".

Sam Hill, an RBC Capital Markets economist, said that it was possible that the Bank might "give some thought to other potential measures". He suggested that a relaunch of the Funding for Lending Scheme could be one possible intervention for policymakers to consider.

Sam Hill, an RBC Capital Markets economist, said that it was possible that the Bank might "give some thought to other potential measures". He suggested that a relaunch of the Funding for Lending Scheme could be one possible intervention for policymakers to consider.

[Brexit] created a significant uncertainty for the global economy
Gerry Rice
Mr Carney’s comments came as the International Monetary Fund warned that the Brexit vote could lead to “prolonged periods of uncertainty” and weaker economic growth across the globe.

Gerry Rice, the IMF spokesman, said that the UK’s decision to withdraw from the EU “clearly created a significant uncertainty for the global economy that we think is likely to dampen growth in the near term”.

Mr Rice added: “We need to be ready, all of us policymakers, with decisive actions that can help mitigate that as much as possible.”

The IMF spokesman urged both the UK and the EU to work towards achieving a “smooth and predictable transition”. Mr Rice explained that “a quick agreement that is prudent and acceptable to all would be optimal, but rushing to a negative outcome would not be in anyone’s interest”.

Commenting on the sharp moves in major currencies that followed the EU referendum, Mr Rice said that the movements “were large but not excessively disorderly”. Sterling fell to its lowest levels against the US dollar since 1985 after it became clear that Britons had decided they wanted to divorce the EU.

Mr Carney said that the fall in the pound might boost growth by making exports more competitive, but that it would also increase the price of imports, reducing the purchasing power of workers’ incomes.

I would not be surprised if there were some politicians who call for him to be sacked
Marc Ostwald
These effects, coupled with rising uncertainty, that could be expected to “remain elevated for some time”, pointed to “a materially lower path for growth and a notably higher path for inflation than previously thought”, the Governor said.

Marc Ostwald, an ADM ISI strategist, said that Mark Carney had “nailed his colours to the post with this speech” as the Canadian’s tone on the prospects for the UK after Brexit were no less vociferous than before the referendum.

“I would not be surprised if there were some politicians who call for him to be sacked,” Mr Ostwald said. “That would be a stupid idea, especially given there are no hands on the tiller of government.”

The outcome of the ongoing Conservative leadership race could mean that Mr Carney will have to answer to one of the MPs campaigning for Brexit, some of who questioned the Governor’s position after the Bank published analysis of the likely economic impact of a choice to leave the EU.

Mr Carney said that it would be “irresponsible of me, or any of my colleagues, to walk away because those are our responsibilities under statute”.

Pound drops as Bank of England's Mark Carney hints at fresh interest rate cuts

Is there still interest to be cut?
I haven't received any interest on my Pound saving account for years.

GBP/THB (GBPTHB=X) -CCY

46.3060 Down 0.1410(0.3000%) 6:29AM BST

Prev Close: 46.4470

Open: 46.5220

Bid: 46.3060

Ask: 46.3280

Day's Range: 46.1110 - 46.5580

52wk Range: 46.1110 - 56.4566

The Pound is on the slippery slope .

GBP/THB (GBPTHB=X) -CCY

45.3960 Down 0.3520(0.7700%) 12:10AM BST

Prev Close: 45.7480

Open: 45.7080

Bid: 45.3960

Ask: 45.4410

Day's Range: 45.1490 - 45.7970

52wk Range: 45.1490 - 56.4566

Originally Posted by Iceman123

The UK stock market will continue to ebb and flow as the rumours / news abounds on a daily basis.

I would however have more reservations about the recovery of sterling. I think we may see further drops in the next month.

28th June
Told you so!

44 Baht to the pound next week.
Slipper Slope
45.70 and dropping

The good old days 8 months ago ,

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Not in Gods country - Oz

Can you please make the USD drop just for a week Snake? I have to change down a shit load. Twins in uni in America and fees coming due soon.

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Sorry to say the USD will get stronger as the pound drops .

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If Trump gets in, (unlikely event) the $ will nosedive.

Originally Posted by snakeeyes

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Sorry to say the USD will get stronger as the pound drops .

which means that the pound to dollar exchange rate drops faster.
Like burning a candle from both ends.

Ouch that's starting to hurt

during july and august, rates are always lower, because of tourism arrival pressure

The slide is inexorable, inevitable and as a trend will persist for the next five years minimum.
I am budgeting on the basis the £ will be trading at 40 baht within a month or so but parity with the $ US is still a likelihood if the full force of the Brexit stupidity is realised.
The £ at 35 baht will mean considerable and immediate inflationary pressures and the inflation rate will almost certainly hit 3% by next September. I'm looking at 5% by the winter of 2017/18 which will persist as the norm.
My pensions are index linked so I'm relatively relaxed about remaining here but for those who are not this reversal will be truly painful. Buggered if you stay but damned if you return and have to survive in a recessionary Britain with a dollar currency but the old £ income levels. Essentially, the lower-middle classes in the UK will be the equivalent of Mexican wetbacks in California or Romanians in Germany.

Interesting times indeed and nothing has happened like it since the IMF bailed out Britain and Wilson had to devalue the £. The fallout from broken Britain took 15 - 20 years to clear.

Originally Posted by Dragonfly

during july and august, rates are always lower, because of tourism arrival pressure

Finance not your strong point?
Don't tell George Soros this gem, otherwise he will make a fortune.

Slippery slope the £