Sign up | Log in



Home  >>   Daily News  >>   Thailand  News  >>   Economy  >>   Thai rates look firm
NEWS UPDATES Asean Affairs        19  April 2011

Thai rates look firm

Related Stories

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

March 14, 2011
Japanese tragedies should not affect Thai bourse

The Monetary Policy Committee (MPC) is widely expected to continue increasing its policy interest rate despite the government deciding yesterday to maintain its ceiling on the retail diesel price.

The government will use 40 billion baht in fiscal revenue by waiving excise and consumption taxes totaling 5.7 baht a litre to keep diesel at 30 baht until September in order to avoid additional borrowing to cover the Oil Fund's liability.

Yesterday's move prompted further concern among economists over consumer prices in the future as once the extension expires in September, policymakers will face the challenge of deciding yet again whether to adjust the diesel price.

Santitarn Sathirathai, an economist at Credit Suisse, said the government's decision reflects the fact that consumer prices for rural residents and low-income earners are generally higher than the country's average.

The MPC is expected to increase the interest rate by 25 basis points at each meeting until reaching 3.25 percent in August.

It will probably increase the overnight bond repurchase rate further if the global oil price continues to increase after September.

"The risk of inflation is a more pressing issue than economic growth. Prices of farm commodities have increased along with oil, and this will boost domestic consumption," said Dr Santitarn. The next MPC meeting will be held tomorrow, with the policy interest rate now standing at 2.5 percent. Dr. Santitarn said headline inflation of 3.8 percent is expected, assuming the government gradually lifts the diesel subsidy after September.

In March, the headline consumer price index rose by 3.14 percent year-on-year and by 0.5 percent month-on-month. Prices of food items rose by 0.76 percent month-on-month and those of non-food items by 0.33 percent. Core inflation rose by 0.28 percent month-on-month.

"The risk of inflation will elevate. Salary and minimum wage increases will fuel inflation, but we won't see runaway inflation," said Dr. Santitarn.

He said the amount of taxes levied on diesel equals the Oil Fund subsidy, so the waivers essentially add up to stopping the transfer of Oil Fund money to the Finance Ministry.

The central bank will revise its inflation forecast on April 28 while making an assumption that the Dubai oil price will remain above US$92 a barrel.

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    19  April 2011 Subsribe Now !
• Indonesia’s economic development plan Subcribe: Asean Affairs Global Magazine
• Indonesian president pushes for private investment Asean Affairs Premium
• Malaysian bank expands to Singapore, Indonesia
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Philippine T-bills slump
• Oil drilling starts in Leyte

• Thai rates look firm

• Japanese find refuge in Thailand

• Vietnam calls for cooperation on Mekong hydro p

Asean Analysis    19  April 2011

Advertise Your Brand
• Food insecurity is here to stay Sponsor Our Events

Asean Stock Watch    19  April 2011

• Asean Markets Will Fall 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

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand