Sign up | Log in



Home  >>   Daily News  >>   Thailand  News  >>   Economy  >>   Thai interest rate raised
NEWS UPDATES Asean Affairs        21  April 2011

Thai interest rate raised

Related Stories

April 19, 2011
Thai rates look firm

April 12, 2011
Thai central bank reviews policies

April 11,2011
Subsidy issues plague Thailand

April 8, 2011
Disasters hit Thai SMEs

April 6, 2011
Thailand gains from improved trends

April 2, 2011
Next Thai government has challenges

April 1 , 2011
Exports, tourism, local consumption, drive Thai economy

The Bank of Thailand has sent a firm signal that interest rates will continue to rise in the near future in light of higher commodity prices and the temporary impact of Japan's disaster.

The central bank's Monetary Policy Committee (MPC) said yesterday that the policy rate was being "normalised", voting 6:1 to increase the overnight bond repurchase rate by a quarter percentage point to 2.75%, as expected.

The increase was the sixth since July last year. The interest rate stood at 3.75 percent before the MPC started to reduce rates to counter the global downturn that began in September 2008. Paiboon Kittisrikangwan, an assistant governor, said the MPC expected inflation to be fuelled by strong domestic demand and rising prices of oil and other commodities, as well as the end of price caps on some goods.

Meanwhile, the MPC expects economic growth momentum to remain strong in the near future, driven by robust exports and domestic demand.

"The increase in oil prices is being caused by increasing purchasing power in emerging markets, particularly China and the rest of Asia. The high oil prices would have a minor impact on growth," Mr Paiboon said.

"The government's measure to prolong the price cap on diesel at 30 baht per litre just delays the rise of inflation."

The impact of the events in Japan would be temporary and producers are expected to accelerate production to offset the slowdown in the last five to six months of this year. The impact from floods in the South on economic growth would be limited, he said.

"The [MPC] member who voted 'no' wants to hold the rate increase to assess the impact of Japan's manufacturing disruptions on the local supply chain. The member did not oppose the committee's plan of interest rate normalisation," said Mr Paiboon.

Mr. Paiboon said the policy interest rate remained one full percentage below inflation, even after the increase yesterday.

Wellian Wiranto, an economist with HSBC, said he expected the MPC to raise its rate by another quarter point to 3% when it meets in early June.

The MPC is expected to be cautious afterward, however, as the general elections remain an uncertainty and the global recovery remains fragile.

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    21  April 2011 Subsribe Now !
 • Indonesia FDI jumps 12 percent Subcribe: Asean Affairs Global Magazine
• Indonesia won’t reach oil production target Asean Affairs Premium
• Malaysian property prices to rise
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Philippines may freeze oil prices
• Singapore satellite launched

• Thai interest rate raised

• Thailand seeks visa deal with China

• Piracy damaging Vietnamese economy p

Asean Analysis    21  April 2011

Advertise Your Brand
• The Mekong River gets a reprieve Sponsor Our Events

Asean Stock Watch    21  April 2011

• Asean Markets will head to record highs p

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?

AseanAffairs   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