ID :
139370
Thu, 08/26/2010 - 10:38
Auther :
Shortlink :
http://m.oananews.org//node/139370
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Policy interest rate likely to rise to 2% by year-end: KRC
BANGKOK, Aug 26 – The policy interest rate is projected to increase further by a quarter point to 2 per cent by the end of this year amid economic risk factors, according to Kasikorn Research Center.
The leading think tank said it believed many agencies including the Bank of Thailand, the Finance Ministry, and the National Economic and Social Development Board would raise their economic growth projections for this year.
The Monetary Policy Committee would give more weight to supervising core inflationary pressures which it sees as overtaking the inflation-targeting framework of 0.5-3 per cent next year.
KRC believed the policy interest rate hike would neither impact the baht nor fuel a foreign capital inflow. Also, the policy rate is expected to increase gradually and carefully.
It said the MPC’s decision on the policy rate at its meetings in the rest of 2010 might take into account other factors than the core inflation rate hike, particularly the direction of the economy in the second half of this year which might grow at a slower pace in tandem with the expected global economic slowdown.
In addition, the MPC would have to keep a watch on higher prices of various products in the last quarter of this year, the strengthening of baht, and the downward global economic trend.
With these factors, KRC said, fuel and commodity prices and inflationary pressure would not accelerate in the remaining period of this year. (MCOT online news)
The leading think tank said it believed many agencies including the Bank of Thailand, the Finance Ministry, and the National Economic and Social Development Board would raise their economic growth projections for this year.
The Monetary Policy Committee would give more weight to supervising core inflationary pressures which it sees as overtaking the inflation-targeting framework of 0.5-3 per cent next year.
KRC believed the policy interest rate hike would neither impact the baht nor fuel a foreign capital inflow. Also, the policy rate is expected to increase gradually and carefully.
It said the MPC’s decision on the policy rate at its meetings in the rest of 2010 might take into account other factors than the core inflation rate hike, particularly the direction of the economy in the second half of this year which might grow at a slower pace in tandem with the expected global economic slowdown.
In addition, the MPC would have to keep a watch on higher prices of various products in the last quarter of this year, the strengthening of baht, and the downward global economic trend.
With these factors, KRC said, fuel and commodity prices and inflationary pressure would not accelerate in the remaining period of this year. (MCOT online news)
