Thailand's central bank (BOT) states that the interest rate differential with the US is not pressuring the baht or driving capital outflows. The BOT views market expectations as already priced in and notes the current 1% policy rate is appropriate for Thailand's below-potential recovery. Foreign direct investment has flowed in at a net 50 billion baht since start of year, with strong external buffers (300+ billion USD reserves covering short-term debt 2.8x) limiting capital flight risks despite recent Middle East tensions.
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