Thai central bank head warns of financial system risk from ultra-low rates
WASHINGTON (Reuters) - Huge global capital flows and prolonged ultra-low interest rate policies of advanced nations have made it harder for emerging economies to protect their financial system, Bank of Thailand Governor Veerathai Santiprabhob said on Sunday.
Given a surge in the past decade of capital flows driven by global investors seeking "speculative returns," emerging economies have become more vulnerable to exchange-rate volatility that hurt their companies, he said.
"At times, exchange rates could serve as an amplifier of shocks in capital flows instead of being a stabilizer of shock in capital flows," Veerathai said in a seminar on policy challenges for ...