CIMB: MPC to increase key interest rate


BANGKOK, 23 August 2011  – CIMB Thai Bank has expected that the Monetary Policy Committee (MPC) will increase policy interest rate in its upcoming meeting on 24 August 2011 in an effort to tame the rising inflation. 

CIMB Executive Vice President Narongchai Wongthanavimok expected that the MPC will increase the policy interest rate by 0.25% in a move to curb the national inflation which is still skyrocketing.

Mr Narongchai stated that although the MPC has been asked to delay increasing the interest rate to reduce financial costs and stimulate the economy, economic stimulation can be made via monetary policies or state projects, not just through a low interest rate.

The vice president however noted that the bank believed the policy interest rate remains in upward trend, and the policy interest rate in the end of this year is expected to hit 4.0% from the existing one of 3.25%.

The MPC has been increasing the policy interest rate six times in a row since 1 December 2010.