ID :
23279
Wed, 10/08/2008 - 20:20
Auther :

Bank of Thailand maintains policy interest rate at 3.75%

BANGKOK, Oct 8 (TNA) - Citing a domestic economic slowdown due to worry
over Thailand's current political turbulance and the global financial
crisis, the Monetary Policy Committee (MPC) of the Bank of Thailand (BoT)
on Wednesday kept its policy interest rate unchanged at a 3.75 per cent
annual rate, a senior BoT official said.

BoT assistant governor Duangmanee Vongpradhip said the reasons for keeping
the policy rate unchanged stemmed from signs of further economic slowdown
in Thailand from August due to higher risks from the global financial
crisis coupled with political unrest in the country.

Thailand's domestic political turmoil has eroded investor and consumer
confidence and impacted tourism for both locals and foreigners, she said.

The Thai government may not be able to fully disburse its planned
expenditures, while its plan to invest in extensive mega-projects may not
be fully achieved either, she said.

Ms. Duangmanee noted that the failures will affect economic stimulation
plans.

Global financial risks may impact economies in the European Union, Japan
and other Asian countries which would eventually hurt Thailand's exports,
she said.

The MPC has predicted that higher farmer incomes and a slowdown in
inflation will help boost the Thai public's purchasing power, she said.
However, consumer goods prices may rise after the six government-sponsored
measures to assist low-income earners expire at the end of January 2009.

She said the BoT will revise Thailand's economic growth estimate on
October 17. The central bank earlier projected that growth this year would
be around 4.8-5.8 per cent.

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