ID :
102827
Wed, 01/27/2010 - 10:03
Auther :
Shortlink :
http://m.oananews.org//node/102827
The shortlink copeid
BoT likely to raise policy interest rate in Q3, says FPO
BANGKOK, Jan 27 (TNA) – The Bank of Thailand (BoT) Monetary Policy Committee is expected to raise the policy interest rate only once this year, by 25 basis points to 1.50 per cent in the third quarter in order to oversee the international capital movement, according to the Fiscal Policy Office.
FPO director-general Satit Rungkasiri said the MPC needed to increase the repurchase rate (repo) to supervise the foreign capital inflow to ensure it moves in line with the upward repo adjustment and in support of Thailand’s economic recovery.
“We believe the global interest rate will eventually go up in the second quarter of this year. Raising the repo is unavoidable in China and Vietnam. It is likely it will rise by 0.25 per cent in the third quarter,” he said.
The FPO chief believed the Thai economy in the fourth quarter last year would grow 3.8 per cent year on year.
The gross domestic product (GDP) is expected to shrink by 2.8 per cent in 2009, but expand by 3.5 or 3-4 per cent in 2010.
The headline inflation rate is projected to increase at an accelerating rate due to the economic growth.
The stronger baht against the US dollar would not undermine Thailand’s export competitiveness because the baht continues to move in line with other currencies in the region.
Mr Satit said he was confident that the Bank of Thailand will be able to contain the baht fluctuation. So, the business sector should not panic about the strengthening of the baht (TNA)
FPO director-general Satit Rungkasiri said the MPC needed to increase the repurchase rate (repo) to supervise the foreign capital inflow to ensure it moves in line with the upward repo adjustment and in support of Thailand’s economic recovery.
“We believe the global interest rate will eventually go up in the second quarter of this year. Raising the repo is unavoidable in China and Vietnam. It is likely it will rise by 0.25 per cent in the third quarter,” he said.
The FPO chief believed the Thai economy in the fourth quarter last year would grow 3.8 per cent year on year.
The gross domestic product (GDP) is expected to shrink by 2.8 per cent in 2009, but expand by 3.5 or 3-4 per cent in 2010.
The headline inflation rate is projected to increase at an accelerating rate due to the economic growth.
The stronger baht against the US dollar would not undermine Thailand’s export competitiveness because the baht continues to move in line with other currencies in the region.
Mr Satit said he was confident that the Bank of Thailand will be able to contain the baht fluctuation. So, the business sector should not panic about the strengthening of the baht (TNA)
