ID :
128198
Wed, 06/16/2010 - 15:09
Auther :

Private sector advised to brace for policy interest rate hike

BANGKOK, June 16 (TNA) – The Bank of Thailand (BoT) advised the public sector to brace for the policy interest rate hike in the near future, citing efforts to keep the interest rate unchanged for too long posed a threat to the economy.

The warning was given at a meeting between top BoT officials and representatives of the Importers and Exporters Association, the Thai Tourism Business Association, the Federation of Thai Industries, and the Thai Chamber of Commerce and offered an opportunity to discuss and exchange views on economic conditions, implementing monetary policy now and in future, and obstacles to business performance.

Chaired by BoT Governor Tarisa Watanagase, the meeting ended with a focus on three main issues.

The central bank reported, first, its belief that the Thai economy will continue growing satisfactorily in tandem with global economic expansion despite risks from political troubles, and the debt crisis in Europe.

Consequently it is unnecessary for the bank to maintain the interest rate to stimulate the economy. However, it will supervise the interest hike to ensure the adjustment does not obstruct business performance and economic growth.

Second, the business sector representatives voiced concern over the impacts of the debt crisis in Europe on the Thai economy and the baht, which they said needs to be closely monitored.

Finally, the central bank assured private-sector representatives of the stability of Thailand's financial institution system and its readiness to support the business sector.

Vice chairman Pongsak Assakul of the Thai Chamber of Commerce revealed that the private sector was warned of the possible policy interest rate hike by this year after benefiting from low interest rate for a long period.

Regarding the baht's movement, Mr Pongsak said the currency had appreciated at a slightly higher rate than those of its rivals and trade partners. (TNA)

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