Bank of Thailand governor Veerathai Santiprabhob has sounded the alarm over potential sharp market corrections based on a mismatch between market expectations and economic fundamentals. The recent sell-off in global equities and bonds is an example of a market correction triggered by a mismatch between US economic readings and market expectations, he said. "Such market corrections seemed to be a good thing as they happened before a bigger mismatch, which could lead to a sharp market correction in the future," Mr Veerathai said. Veerathai: Evaluating risks is challengingA market with mismatched views cannot be sustained, possibly leading to a sharp and fast correction, he said. The MPC decided to keep its policy rate unchanged at 1.5% during last week's meeting.

Source: Bangkok Post February 22, 2018 23:37 UTC