BoT to maintain interest rate at 1.25%

BANGKOK, 14 January 2010 (NNT) – The Bank of Thailand (BoT) decided to maintain the national interest rate at 1.25% to back up continuous economic recovery, according to Mr Paiboon Kittisrikangwan, Assistant Governor of the Bank of Thailand.

Mr Paiboon stated that the Monetary Policy Committee (MPC) had resolved to keep the interest rate at 1.25% despite a slight recovery of the Thai economy as a result of increasing consumption in the automotive, tourism, agricultural industries, including the rate of export. However, the capital inflow from the private investment is still low, he added.

MPC viewed that inflation would likely stay high, and to maintain the interest rate at 1.25% will be the best option to ensure economic recovery amidst the prevailing situation in the country.

Mr Paiboon said that the monetary policy in 2010, will put its effort in stabilizing the Thai economy as first priority as well as rebounding investors’ confidence to invest more in Thailand to help the government slow down the monetary plan, but to make sure that it will not bar the national economic recovery.

Lastly, the fluctuation of the interest rate will depend on the MPC’s vision. The interest rate will likely be raised in many markets in the second half of this year.