ID :
99953
Thu, 01/14/2010 - 09:55
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http://m.oananews.org//node/99953
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Policy interest rate set to climb slightly after mid-year
BANGKOK, Jan 14 (TNA) – Thailand’s policy interest rate is likely to edge up by 0.50-0.75 per cent or so in the second half of this year given the higher inflation rate and the ongoing economic recovery, according to a top banker.
Prasarn Trairattanaworakul, president of Kasikornbank, said the Bank of Thailand (BoT) Monetary Policy Committee is projected to keep the policy interest rate unchanged at 1.25 per cent through the first half of the year since the monetary policy adopted by many countries continues easing.
Recently, lending by financial institutions remained low because the country’s economy was on the path of recovery, so it is unlikely the interest rate would climb up in the first half of this year.
Commenting on the economic trend this year, he said the Thai economy would grow gradually at 3-4 per cent this year, but there remain many risk factors both locally and overseas.
Mr Prasarn said key negative factors affecting the country’s economic development this year include ongoing political uncertainty, slow private investment, and resolving the Map Ta Phut problem.
External risk factors included higher prices of fuel and commodities, and the unstable economic recoveries of the United States, Japan and Europe.
“Liquidity in the financial system remains high because lending is still low, capital continues to flow into Thailand, and liquidity in the global financial system is abundant,” he said. (TNA)
Prasarn Trairattanaworakul, president of Kasikornbank, said the Bank of Thailand (BoT) Monetary Policy Committee is projected to keep the policy interest rate unchanged at 1.25 per cent through the first half of the year since the monetary policy adopted by many countries continues easing.
Recently, lending by financial institutions remained low because the country’s economy was on the path of recovery, so it is unlikely the interest rate would climb up in the first half of this year.
Commenting on the economic trend this year, he said the Thai economy would grow gradually at 3-4 per cent this year, but there remain many risk factors both locally and overseas.
Mr Prasarn said key negative factors affecting the country’s economic development this year include ongoing political uncertainty, slow private investment, and resolving the Map Ta Phut problem.
External risk factors included higher prices of fuel and commodities, and the unstable economic recoveries of the United States, Japan and Europe.
“Liquidity in the financial system remains high because lending is still low, capital continues to flow into Thailand, and liquidity in the global financial system is abundant,” he said. (TNA)
