Bank of Thailand signaling interest rates hike

BANGKOK, 29 March 2011 (NNT) – The Bank of Thailand (BoT) would gradually increase interest rates in a bid to control the current inflation within the kingdom, according to BoT Governor Dr Prasarn Trairatvorakul.

Dr Prasarn stated that the government in the last 1-2 years was very concerned over national economic recovery due to the global economic crisis; however, the current economy has been strengthening continuously, leading to higher inflation rate within the kingdom.

As a result, the governor pointed out that the BoT has resorted to using its monetary policy to take care of the rising inflation. The approach is expected to create a balance between the monetary and fiscal policies necessary for sustainable economic development.

NNT