3.25% policy interest rate possible at year-end

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BANGKOK, 22 April 2011 – Kasikorn Research Center (KResearch) has predicted that the Monetary Policy Committee (MPC) will keep increasing the policy interest rate until it touches 3.25% at the end of this year. 

KResearch insisted on its previous projection on the policy interest rate hike, stating that the MPC will implement monetary policies designed to tame the inflation, which tends to remain high in the future.

Although measures implemented to regulate product and energy prices by the government might help lessen inflationary pressure partially, they might not be able to withstand the pressure from the expected inflation.

KResearch then estimated that the core inflation rate of Thailand might touch 3.0% as targeted by the Bank of Thailand (BoT) within the last quarter this year.

KResearch foresaw that the MPC would tighten its monetary policy in the next two meetings in June and July 2011 by keeping on increasing the policy interest rate until it reaches 3.25% at the end of this year.