BANGKOK, 25 August 2011 – The Monetary Policy Committee (MPC) has decided to increase the policy interest rate by 0.25 percent to 3.50 percent in an effort to curb the rising inflation.
Bank of Thailand (BoT) Assistant Governor for the Monetary Policy Group Paiboon Kittisrikangwan revealed that, upon a vote of 5-2 during its meeting yesterday, the MPC resolved to adjust the policy interest rate up by 0.25 percent from 3.25 to 3.50 percent. The decision was prompted by the tendency of the Thai economy to expand further in combination with the high inflation risk and the relatively low interest rate at the moment. The committee believed the interest rate hike would help regulate the inflationary pressure in the future.
Furthermore, Mr Paiboon said the MPC also indicated a potential growth in domestic consumption and investment, considering the high employment rate, improving confidence, increasing loan demand and economic stimulus measures of the Government. Nonetheless, the committee will continue to monitor the global economy and inflation very closely while preparing appropriate measures for helping the national economy expand in an efficient manner.