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BoT likely to maintain rates Wednesday

Written by Writer on Monday, October 6th, 2008

BoT likely to maintain rates Wednesday

The Bank of Thailand (BoT) Monetary Policy Committee will likely keep the policy interest rate unchanged at 3.75 per cent when it meets Wednesday, according to the Kasikorn Research Center.

The think tank said the credit position of the global financial market had deteriorated rapidly, But overall, Thailand’s economic stability remains sound, because the position of financial institutions is strong and the liquidity in the financial system is high, the centre claimed.

KRC stated that the actual 12-month deposit rate remained negative in August when compared with the inflation rate, as it was held at 4.18 per cent while inflation rose.

Regarding the policy interest rate trend, Kasikorn said that the MPC is likely to give more weight to economic growth risk than to the risk of inflation.

The United States Federal Reserve might need to cut its policy interest rate ahead of the normal meeting of the MPC. These factors should not be overlooked, Kasikorn warned, as they would influence the MPC’s decisions regarding policy interest adjustments in the future. (TNA)

Bangkok Post

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News Topics : Bangkok Post, Bank of Thailand, Bank Thailand, Credit Position, Decisions, Economic growth, Economic Stability, Federal Reserve, Financial Institutions, Global Financial Market, Inflation Rate, Interest Rate Trend, Kasikorn Research, Liquidity, Monetary Policy Committee, Mpc, Policy Interest, Risk, Rose, Tank, United States Federal Reserve