ID :
176820
Wed, 04/20/2011 - 14:25
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Shortlink :
http://m.oananews.org//node/176820
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BOT raises key interest rate by 0.25%
BANGKOK, April 20 (TNA) - The Bank of Thailand (BOT) has decided to raise its repurchase rate, known as the country's key policy interest rate, by another 0.25 per cent, from 2.50 per cent to 2.75 per cent to curb rising rates of inflation.
The decision, which will take immediate effect, was made by the Thai central bank's Monetary Policy Committee (MPC) at its latest meeting on Wednesday. It was the 6th such increase since July 14 last year, a period which has seen the country's inflation rise 3.7 per cent.
BOT Governor Prasarn Trairatvorakul said, however, that Thailand's inflation rate this year is likely to be lower than earlier forecasts predicted, due to the Thai government's decision to cap domestic diesel prices by reducing its excise tax.
According to the BOT chief, the Thai government’s move to reduce the oil excise tax from May to September 2011 to keep the domestic diesel prices unchanged should lead to a drop in Thailand's general inflation rate by 0.7 per cent to 2.5-4.5 per cent this year and in the core inflation rate by 0.3 per cent to 2-3 per cent.
Meanwhile, the Thai Cabinet has resolved at its weekly meeting to cut the excise tax on diesel from 5.31 baht per litre per to 0.005 baht per litre, as proposed by the Thai Ministry of Finance. The measure will be effective from April 21 until September 30, 2011, aiming to keep retail prices of diesel fuel on the domestic market within the 30 baht-per litre benchmark. (TNA)
The decision, which will take immediate effect, was made by the Thai central bank's Monetary Policy Committee (MPC) at its latest meeting on Wednesday. It was the 6th such increase since July 14 last year, a period which has seen the country's inflation rise 3.7 per cent.
BOT Governor Prasarn Trairatvorakul said, however, that Thailand's inflation rate this year is likely to be lower than earlier forecasts predicted, due to the Thai government's decision to cap domestic diesel prices by reducing its excise tax.
According to the BOT chief, the Thai government’s move to reduce the oil excise tax from May to September 2011 to keep the domestic diesel prices unchanged should lead to a drop in Thailand's general inflation rate by 0.7 per cent to 2.5-4.5 per cent this year and in the core inflation rate by 0.3 per cent to 2-3 per cent.
Meanwhile, the Thai Cabinet has resolved at its weekly meeting to cut the excise tax on diesel from 5.31 baht per litre per to 0.005 baht per litre, as proposed by the Thai Ministry of Finance. The measure will be effective from April 21 until September 30, 2011, aiming to keep retail prices of diesel fuel on the domestic market within the 30 baht-per litre benchmark. (TNA)
