Bangkok Bank chairman Kosit Panpiemras said that continuing excess liquidity among Thailand’s commercial banks could see them opting for further interest rate cuts next year, though they would exercise caution not to hurt depositors.
Kosit also forecast intense competition, spurred by a continued growth in domestic spending. He expected the economy next year to grow between 3 per cent and 5 per cent. The reason for such a wide range was due to the many uncertain factors like deflation, war in the Middle East and international terrorism, which could seriously affect global economies and financial markets.
“Thailand's economic growth would be more sustainable in the long-term, should Thailand's small and medium-sized enterprises (SME) be healthier,” said Kosit.
