Rate hike depends on economic factors and inflation, says BoT

BANGKOK, Mar 25 (TNA) – Bank of Thailand (BoT) Governor Tarisa Watanagase on Wednesday announced a central bank decision by the Monetary Policy Committee on April 21 to raise the policy interest rate will be made based mainly on domestic economic factors and the inflation rate.

She said the central bank would not decide to raise the policy interest rate in the same direction with other countries in the region, but the appropriate period and level at which the interest rate should remain depended on the MPC’s discretion.

Foreign capital flowing into Thailand now in greater volume than in the past, as is foreign capital inflow into the region.

Many central banks raised their policy interest rates in March. Malaysia, for instance, opted to increase the rate by 0.25 per cent to 2.25 per cent, India raised the rate by 0.25 per cent to 3.5 per cent and Australia hiked the rate by 0.25 per cent to 4 per cent .

Regarding the Finance Ministry suggestion that the central bank bring international reserves to buy ministry-issued bonds instead of encouraging the ministry to seek offshore loans, she said the matter needed be discussed with the ministry first.

As of March 12, Thailand’s international reserves stood at US$140 billion. (TNA)