The central bank's failure to maintain credibility in financial markets could push up the government's borrowing cost for the 2-trillion-baht infrastructure project, according to Prasarn Trairatvorakul, the Bank of Thailand governor.
"The financial market currently has good confidence in monetary discipline, reflected in yields of 4.27% of 48-year government bonds. A loss of monetary credibility could push up inflationary expectations and long-end yields," he said.
"A change in the interest rate must have justified reasons."
This article is older than 60 days, which we reserve for our premium members only.You can subscribe to our premium member subscription, here.