Central Bank release consumer related NPL figure, to tame appetite for lower rates

Thailand’s Central Bank says total systemic Non Performing Loan is at about US$10 billion, or 2.17% of total loans, up by about US$600 million baht from the previous quarter, down a little year on year at 2.65% of total loan. Consumption related NPL stands at about US$2 billion or 2.3% of total loan, up by about US$100 million from last quarter. The amount is about 23% of total NPL. The Thai Central Bank, is trying to build a case for an asset bubble, from consumption, as leading to high NPL, as a rationale to keep interest rate at current level, and not reduce interest rate in hope to lower foreign capital inflow that is hurting exports. Thai long-term planner, NESDB, have lowered Thailand’s growth forecast, but the Central Bank dispute NESDB figure (Source).

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