Sign up | Log in



Home  >>   Daily News  >>   Thailand  News  >>   Economy  >>   Interest rate in Thailand set to rise
NEWS UPDATES Asean Affairs        1  March 2011

Interest rate in Thailand set to rise

Related Stories

February 21, 2011
Thailand dealing with inflation

February  15, 2011
Japanese firms moving to Thailand

February 12, 2011
Thai bank warns of AEC competition

February 1, 2011
Exports, tourism drive Thai economy

January 29, 2011
Thai government predicts 4.5 percent growth

The Bank of Thailand's concerns about high consumer prices driven by oil and consumer power have led expectations that the interest rate will increase.

The Thai economy enjoyed a strong recovery in consumption in January after widespread floods in late 2010. This and rising inflation expectations among entrepreneurs was increasing pressure on prices to rise.

About 31 percent of surveyed entrepreneurs in January expected inflation to stand at 4-6 percent over the next year, up from 26 percent of respondents in December last year.

Consumption and private investment grew in January after a year-on-year contraction in December amid continually high growth in farm prices. Favourable 14 percent year-on-year growth in bank lending and potential wage increases are positive factors for consumption.

In January, the government continued to record a cash deficit. The trade deficit stood at US$600 million because of imports of oil drills and gold.

Wellian Wiranto, an Asian economist with HSBC, said Southeast Asian economies would face a key threat of inflation, leading their central banks to tighten monetary policy, which would cause their currencies to strengthen.

"The Bank of Thailand is sitting on the curve. It is matching inflation and other policy and economic risks," he said. "We expect inflation to pick up in the second half of the year amid uncertainty in the Oil Fund's capacity and whether subsidies for low incomes will continue after the general election."

The central bank has increased the one-day repurchase interest rate by a full percentage point to 2.25 percent since the last cut to stimulate growth last year. Mr. Wiranto said the consumer price index was likely to increase by 3.89% by the end of the year, up from 3 percent in January. The central bank is expected to increase the policy interest rate to 3 percent by the end of this year, with the oil price a key risk if it exceeds US$100 per barrel based on the Dubai market.

HSBC forecasts economic growth of 5.3 percent for Thailand.

Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    1  March 2011 Subsribe Now !
• GM expects Indonesian sales to jump
Subcribe: Asean Affairs Global Magazine
• Biomass power for Malaysia Asean Affairs Premium
• AirAsia X contracts for Airbus planes
• Alternative Philippine airport planned
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Thai Air moves on Thai Tiger deal
• Interest rate in Thailand set to rise
• Thailand leads Southeast Asia in vehicles
• Vietnam trade in gold bars banned
Asean Analysis    1   March 2011 Advertise Your Brand
• Internet, mobile phones change the world Sponsor Our Events
Asean Stock Watch    1  March 2011
• ASEAN MArkets to Rally
Global News Impacting Asia    17 November 2010
• Bank of America sees Asian inflation
• Lloyd’s increases insurance push in Malaysia
• Wells Fargo analyst on euro
• Obama’s visit to Asia

ASEAN NEWS UPDATES      Updated: 04 January 2011

• Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

Our Products | Work with us | Terms of Use | Site Map | Privacy Policy | Refund Policy | Shipping/Delivery Policy | DISCLAIMER |

Version 5.0
Copyright © 2007-2015 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand