Bank of Thailand (BoT) Governor Tarisa Watanagase on Monday said the ongoing political rallies by the Red Shirt protesters are more persistent and violent than expected, putting Thailand’s sovereign position at risk of being downgraded.
The downgrading would fuel costs of offshore borrowing and shake investor confidence in Thailand, she said.
“We must take into account all factors in assessing the impacts on the economy by assuming how the rallies will end,” she said, “and whether what happens now differs from tghe assumptions.
“How the economy will be affected depends on confidence. Investor confidence is most worrying now,” Mrs Tarisa said.
The BoT chief said the political crisis had begun to impact the Thai economy, but how adversely it will affect depends on whether the rallies end sooner or later.