ID :
139324
Wed, 08/25/2010 - 17:25
Auther :
Shortlink :
http://m.oananews.org//node/139324
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Bank of Thailand raises interest rates for 2nd consecutive month
BANGKOK, Aug 25 – The Bank of Thailand (BoT) on Wednesday raised its policy interest rate by 25 basis points to 1.75 per cent after a quarter percentage point increase last month.
BoT assistant government Paiboon Kittisrikangwan said that the Monetary Policy Committee (MPC) decided to raise the policy interest rate by 0.25 per cent per annum from 1.50 to 1.75 per cent annually.
The Thai economy expanded faster than expected in the second quarter, despite decelerating somewhat from the first quarter due to the domestic political situation. Private consumption continued to grow favourably, while the tourism industry has shown clearer signs of a speedy recovery, the central bank said in its statement.
Manufacturing production and capacity utilisation have risen, which should lend support to private investment in the period ahead. Exports have been growing in tandem with global economic recovery, although the pace of growth is expected to slow down in the second half of the year, the bank said.
Inflationary pressure remains low at present, but is expected to rise in 2011 in line with economic expansion and rising costs of production. There is a small possibility that core inflation could rise above the upper band of the target range, the statement said.
The BoT kept the interest rate unchanged for more than a year before raising the benchmark rate a quarter point last month.
The central bank in July revised its Gross Domestic Product (GDP) forecast to 6.5-7.5 per cent in 2010 from the 4.3-5.8 per cent growth it projected earlier. (MCOT online news)
BoT assistant government Paiboon Kittisrikangwan said that the Monetary Policy Committee (MPC) decided to raise the policy interest rate by 0.25 per cent per annum from 1.50 to 1.75 per cent annually.
The Thai economy expanded faster than expected in the second quarter, despite decelerating somewhat from the first quarter due to the domestic political situation. Private consumption continued to grow favourably, while the tourism industry has shown clearer signs of a speedy recovery, the central bank said in its statement.
Manufacturing production and capacity utilisation have risen, which should lend support to private investment in the period ahead. Exports have been growing in tandem with global economic recovery, although the pace of growth is expected to slow down in the second half of the year, the bank said.
Inflationary pressure remains low at present, but is expected to rise in 2011 in line with economic expansion and rising costs of production. There is a small possibility that core inflation could rise above the upper band of the target range, the statement said.
The BoT kept the interest rate unchanged for more than a year before raising the benchmark rate a quarter point last month.
The central bank in July revised its Gross Domestic Product (GDP) forecast to 6.5-7.5 per cent in 2010 from the 4.3-5.8 per cent growth it projected earlier. (MCOT online news)
