ID :
12028
Thu, 07/10/2008 - 11:20
Auther :
Shortlink :
http://m.oananews.org//node/12028
The shortlink copeid
Kbank's chief advisor backs gradual interest rise to curb inflation
BANGKOK, July 10 (TNA) – The Bank of Thailand should gradually raise the policy interest rate as part of efforts to curb current rising inflation, according to a chief advisor of Kasikornbank Plc.
Piyasawat Amaranant, chairman of the Kbank chief executive officer's advisory team, said that accelerated inflation had occurred in manycountries around the world, including Thailand.
Under the circumstances, monetary policy must be implemented with greaterprudence and caution.
The central bank must gradually increase the interest rate, he said. It should not attempt to keep the interest rate unchanged because theinflation rate might surge incessantly.
Inflation, if it continues to rise unabated, will definitely affect economic stability, weaken the baht, and leads to higher prices forimported oil.
At present, he said, the oil prices are found to be rising because of theweakening of the baht rather than the global fuel price volatility.
Mr. Piyasawat, who was the energy minister in the previous government, conceded that the continued dumping of Thai stocks by foreign investors, which made the Stock Exchange of Thailand (SET) composite index continue to fall, stemmed from their concerns over the global economic slowdown andaccelerated inflation, rather than the ongoing political turmoil.
(TNA)
Piyasawat Amaranant, chairman of the Kbank chief executive officer's advisory team, said that accelerated inflation had occurred in manycountries around the world, including Thailand.
Under the circumstances, monetary policy must be implemented with greaterprudence and caution.
The central bank must gradually increase the interest rate, he said. It should not attempt to keep the interest rate unchanged because theinflation rate might surge incessantly.
Inflation, if it continues to rise unabated, will definitely affect economic stability, weaken the baht, and leads to higher prices forimported oil.
At present, he said, the oil prices are found to be rising because of theweakening of the baht rather than the global fuel price volatility.
Mr. Piyasawat, who was the energy minister in the previous government, conceded that the continued dumping of Thai stocks by foreign investors, which made the Stock Exchange of Thailand (SET) composite index continue to fall, stemmed from their concerns over the global economic slowdown andaccelerated inflation, rather than the ongoing political turmoil.
(TNA)
