ID :
108079
Tue, 02/23/2010 - 09:09
Auther :
Shortlink :
http://m.oananews.org//node/108079
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BoT affirms interest policy implementation with caution
BANGKOK, Feb 23 (TNA) – Bank of Thailand (BoT) Governor Tarisa Watanagase on Monday affirmed the central bank had implemented the monetary policy with caution to ensure it does not hinder the country’s economic recovery.
She emphasised that the bank would consider raising the policy interest rate in a timely manner as the current rate at 1.25 per cent is considered low.
“The Thai economy has clear signs of recovery, so it is no longer necessary to apply a low interest policy. However it is difficult to specify when the interest rate shall be adjusted upward because we must take into account economic conditions,” she pointed out.
Mrs Tarisa said the bank’s decision on interest adjustment would be made based mainly in relation to core inflation rates, not the general inflation rates.
At present inflation is rising since domestic spending and investment have edged up. In addition, the government has reduced its cost-of-living subsidy measures. These factors could add to inflationary pressures.
Regarding the National Economic and Social Development Board (NESDB)’s upward revision of the country’s gross domestic product (GDP) growth in 2010 to 3.5-4.5 per cent from the 3-4 per cent projected in November, the central bank chief said that the bank would use current data to revise its growth estimate.
Kasikornbank president Prasarn Trairattanakul said he supports the central bank’s decision to withhold an interest hike for the time being, that the BoT should wait and see whether the economy will sustain its strong recovery in the first and second quarter of this year.
Should the economy recover, he said, it will not be too late for the Monetary Policy Committee to raise the interest rate in August. (TNA)
She emphasised that the bank would consider raising the policy interest rate in a timely manner as the current rate at 1.25 per cent is considered low.
“The Thai economy has clear signs of recovery, so it is no longer necessary to apply a low interest policy. However it is difficult to specify when the interest rate shall be adjusted upward because we must take into account economic conditions,” she pointed out.
Mrs Tarisa said the bank’s decision on interest adjustment would be made based mainly in relation to core inflation rates, not the general inflation rates.
At present inflation is rising since domestic spending and investment have edged up. In addition, the government has reduced its cost-of-living subsidy measures. These factors could add to inflationary pressures.
Regarding the National Economic and Social Development Board (NESDB)’s upward revision of the country’s gross domestic product (GDP) growth in 2010 to 3.5-4.5 per cent from the 3-4 per cent projected in November, the central bank chief said that the bank would use current data to revise its growth estimate.
Kasikornbank president Prasarn Trairattanakul said he supports the central bank’s decision to withhold an interest hike for the time being, that the BoT should wait and see whether the economy will sustain its strong recovery in the first and second quarter of this year.
Should the economy recover, he said, it will not be too late for the Monetary Policy Committee to raise the interest rate in August. (TNA)
