How does the Transmission mechanism work?
The policy interest rate is a national bank’s tool to maintain financial stability in order to avoid adverse economic conditions in that country. Are you guys wondering how these policy interest rates will be able to stabilize? Today let’s see together what is the impact of a change in the policy interest rate on us and the economy.
Fed heads to raise interest rates sharply by 1% at this month’s meeting on July 26-27. Baht expected to fall further, Thai Baht will slide to 37-38
According to a Fed meeting on this July 26-27, a senior Federal Reserve official has signaled that the Fed may raise interest rates by more than 75-Basis-Pointer as much as 1% at this month’s meeting. After the US inflation numbers rose above expectations. The Thai currency is likely to become weaker against the US dollar due to the policy interest rates vary greatly.
