Interest rate policy still unnecessary

By k on December 22, 2009

BANGKOK, 22 December 2009 (NNT) — The Bank of Thailand is closely monitoring the economic situation to see if the interest rate policy is necessary to curb inflation.

The Governor of the Bank of Thailand, Ms Tarisa Watanagase, said that to prolong the low-interest rate policy would raise two points of concern, which are, a hike in inflation rates and the economic bubble.

Ms Tarisa stated that the Monetary Policy Committee needs to check if the inflation rate is within the set target. She noted that an increase in inflation didn’t mean that the interest rate would have to rise accordingly.

Ms Tarisa added that the intensity of the growth is up to government stimulations which will pave ways for the private sector to pick up. One example is the enforcement of the Thai Khem Kaeng’ stimulus package (SP2) that includes injecting trillions of THB into the Thai economy.

The Bank of Thailand hoped the SP2 would help accelerate the manufacturing sector in the long run so that the Ministry of Finance would be able to collect more tax to pay for higher public debts.

Ms Tharisa added that the Thai economy is heading towards a positive direction due to an increase in domestic spending and a better world economy.

Kasikorn Research Center (KResearch) forecasts the Bank of Thailand (BOT) to peg the policy interest rate at 1.25% BANGKOK, 21 August 2009 (NNT) – Kasikorn Research Center (KResearch)...
Thai central bank keep policy interest rate unchanged at 1.25% BANGKOK, Jan 13 (TNA) – The Bank of Thailand (BoT)...
Thai central bank maintains policy interest rate at 1.25% BANGKOK, July 15 (TNA) — The Bank of Thailand (BoT)...
Higher interest rate is not needed in the next 3 months BANGKOK, 4 November 2009 (NNT) – The Bank of Thailand...
BoT to maintain interest rate at 1.25% BANGKOK, 14 January 2010 (NNT) - The Bank of Thailand...

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