ID :
132859
Wed, 07/14/2010 - 16:20
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Shortlink :
http://m.oananews.org//node/132859
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Thai central bank raises key interest rate first time in two years
BANGKOK, July 14 – The Bank of Thailand (BoT) on Wednesday raised its key interest rate by 0.25 per cent for the first time since 2008, indicating the economy shows a clear sign of recovery.
"The Monetary Policy Committee (MPC) judged that economic recovery
has become more evident and the economy should continue to grow, thus
lessening the need for an exceptionally accommodative monetary policy," the bank said in its statement.
"With a view to bringing policy interest rate closer to normal levels, the MPC therefore decided to raise the policy interest rate by 0.25 per cent per annum from 1.25 to 1.50 per annum," the statement said.
The central bank’s decision came after the ten-week anti-government Red Shirt protests in the capital Bangkok ended in May. The political standoff and the subsequent violent clashes caused losses of about Bt60-70 billion (US$1.9-2.2 billion) in tourism-related revenues, according to Atthachai Burakamkovit, permanent secretary for the Tourism and Sports Ministry. The number of visitors dropped significantly since the protests closed down Bangkok's main shopping district in early April.
"The impact of the domestic political situation on the Thai economy in the second quarter proved to be limited," the central bank said in the statement.
"The tourism industry has shown signs of a quick recovery, while consumption and production were little affected and projected to expand for the rest of the year."
"Exports and private investment have been growing continuously. Overall, the growth of the Thai economy is therefore projected to be higher than previously anticipated," the statement said.
Permanent Secretary for Finance Sathit Limpongpan said earlier that the Finance Ministry forecast the country’s economy will expand more than 6 per cent this year against the 5.5-6 per cent expected earlier as the economic conditions show a clear sign of recovery.
Thailand's GDP is projected to grow satisfactorily due to significant
export growth earlier this year. For the first five months of 2010,
exports rose 34.5 per cent from a year earlier to $t75.0 billion
dollars, according to the Commerce Ministry. (MCOT online news)
"The Monetary Policy Committee (MPC) judged that economic recovery
has become more evident and the economy should continue to grow, thus
lessening the need for an exceptionally accommodative monetary policy," the bank said in its statement.
"With a view to bringing policy interest rate closer to normal levels, the MPC therefore decided to raise the policy interest rate by 0.25 per cent per annum from 1.25 to 1.50 per annum," the statement said.
The central bank’s decision came after the ten-week anti-government Red Shirt protests in the capital Bangkok ended in May. The political standoff and the subsequent violent clashes caused losses of about Bt60-70 billion (US$1.9-2.2 billion) in tourism-related revenues, according to Atthachai Burakamkovit, permanent secretary for the Tourism and Sports Ministry. The number of visitors dropped significantly since the protests closed down Bangkok's main shopping district in early April.
"The impact of the domestic political situation on the Thai economy in the second quarter proved to be limited," the central bank said in the statement.
"The tourism industry has shown signs of a quick recovery, while consumption and production were little affected and projected to expand for the rest of the year."
"Exports and private investment have been growing continuously. Overall, the growth of the Thai economy is therefore projected to be higher than previously anticipated," the statement said.
Permanent Secretary for Finance Sathit Limpongpan said earlier that the Finance Ministry forecast the country’s economy will expand more than 6 per cent this year against the 5.5-6 per cent expected earlier as the economic conditions show a clear sign of recovery.
Thailand's GDP is projected to grow satisfactorily due to significant
export growth earlier this year. For the first five months of 2010,
exports rose 34.5 per cent from a year earlier to $t75.0 billion
dollars, according to the Commerce Ministry. (MCOT online news)
