Concerns over several risk factos still facing the country

BANGKOK, 5 February 2011 (NNT) – Bank of Thailand (BoT) Governor Dr Prasarn Trairatvorakul has voiced his concerns over several risk factos still facing the country despite an improvement in most economic indicators.

Dr Prasarn elaborated that the Thai economy is facing with many risk factors arising from rising product prices, especially in consumer goods, energy and food. He admitted that the problem is common globally and will press the inflation rate to rise.

The governor said the BoT has been monitoring a few risk factors for a couple of months, including the volatility of capital inflows, political factors and a fall in the past month’s consumption rate. He added that Baht’s depreciation would not affect the inflation rate much. Usually, if the baht depreciates by 1%, prices will rise 0.15%.

Dr Prasan said that in the next meeting of the monetary policy committee, the declining consumption and political factors will be taken into consideration.

The governor confirmed that the BoT would see to it that the monetary policy would not affect the economic revival and it would look after the national economic stability in general, especially the property sector.