A Seventh Hike of Thailand’s Monetary Policy Rate
June 2, 2011
The Bank of Thailand lifted its key policy interest rate for a seventh time on Wednesday. Six prior moves had been implemented, three in 2010 (July, August and December) and three more in January, March and April of this year. All seven increases were by 25 basis points from a cyclical low of 1.25% to a current level of 3.0%. A statement from monetary officials signaled that more restraint will probably be taken if needed to anchor expected inflation. A moderation of growth earlier this year in Thailand is presumed likely to prove transitory. Core inflation has risen to a 2-year high and could surpass the target ceiling. Inflation expectations have crept higher amid robust domestic demand. Agriculture and foreign demand remain key economic supports.
Copyright Larry Greenberg 2011. All rights reserved. No secondary distribution without express permission.
Tags: Thailand
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