ID :
199105
Thu, 08/04/2011 - 10:46
Auther :
Shortlink :
http://m.oananews.org//node/199105
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BOT to raise interest rate to curb surging inflation
BANGKOK, August 4 (TNA) - The governor of the Bank of Thailand (BOT) has confirmed an interest rate hike is needed to prevent surging inflation from destabilizing national economy.
BOT Governor Prasarn Triratvorakul said the BOT must raise its policy interest rate to keep inflation growth at 0.5-3 percent, noting that the degree and speed of growth of the interest rate would depend on the level of inflation.
Prasan explained that inflation needed to be closely supervised as it could pose widespread short-term impacts on consumption, investment and production and affect economic stability and development in the long run.
BOT Governor said although the Monetary Policy Committee had raised its repurchase rate from 1.75 percent to 3.25 percent, business operators’ financial costs had risen by 5 percent on an average. Nevertheless, he said most operators could still cope with it.
He added that the BOT believed that the increasing repurchase rate could prevent the surging inflation from raising raw material costs. (TNA)
BOT Governor Prasarn Triratvorakul said the BOT must raise its policy interest rate to keep inflation growth at 0.5-3 percent, noting that the degree and speed of growth of the interest rate would depend on the level of inflation.
Prasan explained that inflation needed to be closely supervised as it could pose widespread short-term impacts on consumption, investment and production and affect economic stability and development in the long run.
BOT Governor said although the Monetary Policy Committee had raised its repurchase rate from 1.75 percent to 3.25 percent, business operators’ financial costs had risen by 5 percent on an average. Nevertheless, he said most operators could still cope with it.
He added that the BOT believed that the increasing repurchase rate could prevent the surging inflation from raising raw material costs. (TNA)
