The central bank's failure to maintain credibility in the financial markets could push up the government's borrowing costs for its 2-trillion-baht infrastructure project, Bank of Thailand governor Prasarn Trairatvorakul says.
Bank of Thailand governor Prasarn Trairatvorakul testifies to a House committee on the 2-trillion-baht infrastructure borrowing bill yesterday. PATIPAT JANTHONG
"The financial markets currently have good confidence in monetary discipline, reflected in yields of 4.27% for 48-year government bonds. A loss of monetary credibility could push up inflationary expectations and long-end yields," he warned.
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