No sign of bubble in property sector, says BoT

BANGKOK, Sept 23 (TNA) – Bank of Thailand (BoT) assistant governor Paiboon Kittisrikangwan on Tuesday stated the central bank had not yet witnessed any sign of a bubble in the property business sector.

He made the remark in response to an earlier Asian Development Bank warning to Asian countries, including Thailand, not to invest in the property business sector when the interest rate remains low.

With the low interest rate, he conceded, excessive investment might occur, which could lead to a bubble in the property sector. However, Mr Paiboon said he had not yet witnessed any sign of a bubble in the sector.

He said that monetary policy adopted by the central bank was established based not only on the inflation rate, but also on economic stability.

“The central bank still has channels for managing monetary policy although interest rates remain low. It has monitored various economic indicators to supervise the balance in the economic system,” he said.

Mr. Paiboon said the central bank still sees a need to monitor the global economic conditions, implementation of fiscal stimulus measures, and political malaise.

Should the political unrest persist, he said, it would affect public confidence, private investment and consumption. It might also delay the government’s investment plan.

He said the BoT hoped the fiscal policy implementation would encourage the private sector to invest, which could contribute to the economic recovery. (TNA)