BoT warns of interest rate rise

BANGKOK, 15 June 2010 (NNT) – The Bank of Thailand (BoT) has advised the private sector to be prepared for rising interest and inflation rates.

After adopting a low-interest rate policy for quite some time, the BoT has alerted the private sector to be ready to deal with an adjustment in the policy. The central bank also noted that the inflation rate, although considered low at present, has also started rising.

Meanwhile, Vice-President of the Thai Chamber of Commerce Pongsak Assakul revealed that the Thai economy had already begun to recover after the recent turmoil in Bangkok had put it on the brink of disaster. Although the political problem has only a small impact on the economic situation, the BoT is still concerned about the effect on the tourism sector.

As for the currency situation, the Thai baht is slightly stronger than that of trade partners and competitors. The private sector wishes the baht to remain as close to the competitors’ as possible.