A Sixth Central Bank Rate Hike in Thailand
April 20, 2011
The Bank of Thailand’s one-day repo rate was lifted as expected to 2.75% from 2.5%, and a statement from the central bank left the door open for more hikes. Indeed, this was the sixth done so far, each by 25 bps, following moves last July, August, December, January, and March. Central bank authorities are more worried about future inflation, proclaiming that “robust demand has intensified the pass-through from higher production costs to overall prices as reflected in rising inflation expectations. As a result, persistently high oil and commodity prices combined with the gradual lifting of price administration measures will add to inflationary pressure going forward.” Even with a regional drag from Japan, analysts expect real GDP in Thailand to expand about 4.5% per annum this year and next. Total CPI inflation climbed to 3.14% last month, and core inflation is at a two-year high.
Copyright Larry Greenberg 2011. All rights reserved. No secondary distribution without express permission.
Tags: Bank of Thailand
ShareThis
