ASEAN KEY DESTINATIONS
November 14, 2007
Thailand : Economy
He said the monetary policy adopted at present could control the core inflation rate in a set range of 0-3.5 per cent for another six months although fuel prices continued to rise.
Dr. Chalongphob believed fuel prices are set to reduce on the global economic slowdown due to the sub-prime mortgage woes in the US.
He said the problem would not have adverse impacts on the overall economy this year. But should the oil prices continue to stay high for long, it would have impacts next year.
Pakorn Malakul na Ayudhaya, chairman of the Stock Exchange of Thailand (SET), expressed concern that inflation rates would surge due to the higher cost of living.
The rising inflation would put the Monetary Policy Committee under pressure of implementing the financial policy.
He believed the Bank of Thailand would closely monitor the situation.