Finansa chief foresees policy rate cut

Finansa Asset Management chief foresees a 50-basis point cut in the policy rate this year, as Thailand needs a measure to slow down foreign capital inflows.

"I support Virabongsa Ramangkura (Bank of Thailand’s chairman who earlier proposed a rate cut)," said Teerapan Jittalan, executive director and CEO of the fund company.

"As developed economies’ central banks are still printing money, inflows will come to Thailand which offers a higher rate. The central bank will need to lower the policy rate, as other tools contain higher side-effects."

To this end, he said investors are advised to invest more in bonds, to lock in the current returns.