ID :
145338
Sat, 10/09/2010 - 12:33
Auther :
Shortlink :
http://m.oananews.org//node/145338
The shortlink copeid
BoT may not raise repurchase rate at upcoming meeting
BANGKOK, Oct 9 -- The Bank of Thailand (BoT) may not increase its repurchase rate (RP) as expected by many businessmen to curb the ongoing rise of the Thai baht against the US dollar during its meeting on October 20, BoT Deputy Governor Atchana Waiquamdee said.
The BoT’s Monetary Policy Committee (MPC) may decide against increasing its policy rate now standing at 1.75 per cent if foreign capital inflows continue entering the kingdom in large amounts and enable the baht to continue strengthening and does not reduce inflation in the country.
If inflation is not affected, the MPC may find it unnecessary to raise the policy rate, she said.
By late Friday, the Thai baht moved at around Bt30-30.07 against the US dollar, edged down from Bt29.85-29.90 on Thursday.
The continued strengthening of the baht worries local exporters while Prime Minister Abhisit Vejjajiva said Friday that his government is preparing additional measures to curb the baht if necessary.
Without specifying the target rate of the baht, he said Finance Minister Korn Chatikavanij would propose to the Cabinet Tuesday measures to ease the impact of the stronger baht on the exporters.
Mrs Atchana’s remarks came after two other MPC members sent a signal that the MPC may not increase the policy rate during the upcoming meeting.
The MPC increased its policy rate twice since the beginning of 2010 which now stands at 1.75 per cent aimed at cushioning the impact of inflation, which is expected to rise above the core inflation at 0.5-3 per cent projected by BoT earlier. (MCOT online news)
The BoT’s Monetary Policy Committee (MPC) may decide against increasing its policy rate now standing at 1.75 per cent if foreign capital inflows continue entering the kingdom in large amounts and enable the baht to continue strengthening and does not reduce inflation in the country.
If inflation is not affected, the MPC may find it unnecessary to raise the policy rate, she said.
By late Friday, the Thai baht moved at around Bt30-30.07 against the US dollar, edged down from Bt29.85-29.90 on Thursday.
The continued strengthening of the baht worries local exporters while Prime Minister Abhisit Vejjajiva said Friday that his government is preparing additional measures to curb the baht if necessary.
Without specifying the target rate of the baht, he said Finance Minister Korn Chatikavanij would propose to the Cabinet Tuesday measures to ease the impact of the stronger baht on the exporters.
Mrs Atchana’s remarks came after two other MPC members sent a signal that the MPC may not increase the policy rate during the upcoming meeting.
The MPC increased its policy rate twice since the beginning of 2010 which now stands at 1.75 per cent aimed at cushioning the impact of inflation, which is expected to rise above the core inflation at 0.5-3 per cent projected by BoT earlier. (MCOT online news)
