ID :
129663
Fri, 06/25/2010 - 08:52
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Shortlink :
http://m.oananews.org//node/129663
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Thailand's policy interest rate expected to rise in third quarter, says top banker
BANGKOK, June 25 (TNA) – Thailand's policy interest rate is likely to edge up in the third quarter of this year in tandem with economic growth while the country’s core and general inflation rates signal an upward trend, according to a top banker.
Chairman Prasan Trairatvorakul of the Thai Bankers’ Association said the decision by the United States’ Federal Reserve to keep its short-term interest rate low for a certain period was made based on real economic conditions at present.
Although the US economic figures had improved, the overall economy remained fragile because the American unemployment rate is rather high. The situation will affect people’s purchasing power and imports of products.
Simultaneously, the European Union might need to continue easing its interest rate policy and withhold an interest hike until the end of this year or early next year due to the debt crisis facing some European countries now, but for Asian countries, the interest rate trend might go in a different direction.
In Thailand, the core and general inflation rates began to show signs of rising. However, it is expected the Bank of Thailand would raise the policy interest rate in the third quarter of this year given the current economic growth, he said. (TNA)
Chairman Prasan Trairatvorakul of the Thai Bankers’ Association said the decision by the United States’ Federal Reserve to keep its short-term interest rate low for a certain period was made based on real economic conditions at present.
Although the US economic figures had improved, the overall economy remained fragile because the American unemployment rate is rather high. The situation will affect people’s purchasing power and imports of products.
Simultaneously, the European Union might need to continue easing its interest rate policy and withhold an interest hike until the end of this year or early next year due to the debt crisis facing some European countries now, but for Asian countries, the interest rate trend might go in a different direction.
In Thailand, the core and general inflation rates began to show signs of rising. However, it is expected the Bank of Thailand would raise the policy interest rate in the third quarter of this year given the current economic growth, he said. (TNA)
