BOT to remain vigilant despite signs of economic recovery

BANGKOK, 11 February 2010 (NNT) — December 2009 figures have indicated positive signs for the Thai economy with growth in domestic consumption, export, production, tourism and the property sector but the Bank of Thailand has resolved to keep a close eye on transpiring events.

Deputy Bank of Thailand (BoT) Governor Bandit Nijthavorn remarked today that even if the recovery of the economy seems stable and consistent, the BoT will have to keep close watch. Mr Bandit commended the government on playing a major role in the recovery with its economic stimulus measures under the Strong Thailand Scheme.

Regarding the adjustments of interest rates, the BOT Deputy Governor said a raise in interest rates will have to be based on a balance of inflation rates and recovery support, which have yet to be concluded. The current interest rate set by the BoT is 1.25%.

Finance Minister Korn Chatikavanij has indicated that the nation’s inflation rate is moving to the appropriate range of 0.5-3% with the GDP expected to grow by 4.7%.