Interview: Mei Audi interest rate hikes to suppress inflation damage is not good for themselves -Cai Weicai, senior vice president of visiting Kaitai Bank, Thailand

Xinhua News Agency, Bangkok, August 5th: Interview with Mei Audi interest rate hikes to suppress inflation damage is not good for themselves -Cai Weicai, senior vice president of visiting Thailand, Thailand, Thailand

Xinhua News Agency reporter Wang Yiguang

Cai Weicai, senior vice president of Kaitai Bank of Thailand, said in an exclusive interview with Xinhua News Agency that the radical interest rate hike strategy adopted by the United States is not good for themselves. The process is worse.

Cai Weicai believes that the imposing sanctions on Russia, led by the United States, led to the soaring commodity prices including oil, including oil, which is an important factor that leads to high inflation in the United States. The Fed's radical interest rate hike is not only difficult to effectively suppress inflation, but also dragging down American companies, which directly leads to an increase in corporate debt costs and a significant increase in interest payment burden.

According to data from the US Department of Labor, the US Consumer Price Index (CPI) increased from March to May of more than 8%year -on -year, and the CPI rose 9.1%year -on -year in June, an increase of nearly 41 years. In order to suppress inflation, the Federal Reserve announced the 75 -basis points of interest rate hikes at the end of July. This is the fourth interest rate hike this year and the second consecutive interest rate hikes 75 basis points.

At the same time, the latest data from the US Department of Commerce shows that the US economy has shrunk for two consecutive quarters this year. The outside world is concerned that the risk of economic recession in the United States has intensified or dragged down the global economy.

Cai Weicai said, "freezing three feet is not a day's cold", many internal and external factors have caused the current dilemma of the US economy. Recently, the factors include the new crown epidemic, Ukrainian situation and decline in overseas market demand, and poor corporate performance.

He believes that the U.S. government's tariffs on Chinese -American transmission of goods have also harmed the US economy. The U.S. government implements unilateralism, setting up a trade barrier, seriously interfere with the healthy development of international trade, destroy the normal operation of the global industrial supply chain, leading to increased production and sales costs, and increasing consumer burden.

He said that free trade and multilateralism are the hardships of sustainable development of the world economy. The process of global economic cooperation in the past few decades also proves this major direction. "Unfortunately, the United States seems to have abandoned the free market principle in the past few years."

Cai Weicai said that thanks to the dominant position of the US dollar in the international currency system, the United States regards the US dollar and its interest rates as a weapon that maintains its economic leading position, which has also caused its policy negative spillover effect to obvious, making the global economic pressure.

In his opinion, the current new crown epidemic has not yet completely faded, and countries are still working hard for economic recovery. The United States ignored its policy overflowing and insisted on radical interest rate hikes, which seriously affected the economic recovery of countries, especially developing countries. With the return of international funds to the United States, emerging markets and developing countries will face challenges such as the turmoil of the stock market, the depreciation of the local currency, the increase in interest on the US dollar debt, and the increase in the cost of importing raw materials. "From this, I am afraid that the world economy recovery needs to be longer."

Cai Weicai said that the recent reduction of US Treasury bonds in the main creditor's rights indicates that the attraction of U.S. debt has been weakened due to the continuous interest rate hike of the Fed. For a long time in the past, the U.S. government seemed accustomed to issuing US dollars and selling government bonds to enrich national strength. In the long run, the amount of US debt has gradually declined to impact US financial strength. With the increase of financing costs, its competitiveness will inevitably be affected.

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