BoT affirms current monetary policy suits Thai economic expansion


BANGKOK, 22 August 2012  – The central bank chief has assured that the bank’s current monetary policy is suitable for the country’s economic growth momentum. 

Bank of Thailand (BoT) Governor Prasarn Trairatvorakul said on Tuesday that the BoT is confident in its monetary policy, which entails a flexible inflation target, as an appropriate move to go along withThailand’s economic growth momentum.

Mr. Prasarn added that the current policy is also supporting domestic consumption and the expansion of local loans.

He stated that Thai interest rate has been relatively low, when compared with the country’s inflation.

The BoT chief went on to say that the present monetary policy is effective in stabilizing and supporting the economic growth, as seen from the continued rise in private loans granted by commercial banks in spite of inflationary pressure from some domestic factors.

Mr. Prasarn conceded, anyhow, that the BoT is to keep monitoring overseas inflationary pressure on the country for some more time.