ID :
144199
Wed, 09/29/2010 - 10:23
Auther :
Shortlink :
http://m.oananews.org//node/144199
The shortlink copeid
Policy interest hike can't contain baht rise, says BoT chief
BANGKOK, Sept 29 – Outgoing Bank of Thailand (BoT) Governor Tarisa Wattanagase on Tuesday rejected suggestions that the central bank raise the policy interest rate to contain the stronger baht, saying that the interest rate, whether it is low or high, could not curb the foreign capital influx if the economy continued growing.
She said foreign investors are rushing to invest in Asian countries including Thailand because the regional economy had enjoyed strong growth.
Because of this, no matter whether the interest is raised or not, it could not significantly help curb the foreign capital inflow.
Actually, she said, Thailand’s policy interest rate is the second lowest in the region. The central bank’s decision to raise the policy rate twice in recent times was made to keep the market in balance, not because of the tightening of Thailand's monetary policy.
Mrs Tarisa said the central bank must oversee pricing stability because it could have an impact on the economy in the long run.
She added that inflation in August grew only 3.3 per cent, but since the economy expanded in all segments, particularly private consumption and investment, it is expected that inflationary pressure would mount and should be monitored with caution.
“All countries in Asia have experienced the same currency appreciation. It shows the regional economy is very strong. Simultaneously, the monetary policy adopted by each country has been already adjusted to the current circumstances,” said Mrs Tarisa. (MCOT online news)
She said foreign investors are rushing to invest in Asian countries including Thailand because the regional economy had enjoyed strong growth.
Because of this, no matter whether the interest is raised or not, it could not significantly help curb the foreign capital inflow.
Actually, she said, Thailand’s policy interest rate is the second lowest in the region. The central bank’s decision to raise the policy rate twice in recent times was made to keep the market in balance, not because of the tightening of Thailand's monetary policy.
Mrs Tarisa said the central bank must oversee pricing stability because it could have an impact on the economy in the long run.
She added that inflation in August grew only 3.3 per cent, but since the economy expanded in all segments, particularly private consumption and investment, it is expected that inflationary pressure would mount and should be monitored with caution.
“All countries in Asia have experienced the same currency appreciation. It shows the regional economy is very strong. Simultaneously, the monetary policy adopted by each country has been already adjusted to the current circumstances,” said Mrs Tarisa. (MCOT online news)
