BoT: MPC to consider interest rate hike carefully


BANGKOK, 23 August 2011 – The Bank of Thailand (BoT) governor has assured that the Monetary Policy Committee (MPC) will put first priority to the country’s benefits when it holds a meeting on Wednesday to consider the policy interest rate.

BoT Governor Prasarn Trairatvorakul elaborated that the MPC will consider many issues in its meeting on Wednesday, including the inflation rate, global economy and a policy interest rate hike. He confirmed that the MPC will uphold national interest in its decision.

The governor admitted that Thailand in the third quarter must meet with new challenges from the US and EU economic situation, and this factor must be monitored closely because it can affect the economic condition in Thailand.

Mr Prasarn noted that capital transfers remain in normal level after the Thai baht has been stable while both local and foreign stock markets are also in normal level.

The governor also reported that a study on the idea to set up the national wealth fund by using international reserves have been partially completed; however, he said using reserves for investment requires good management and supervision.

Mr Prasarn suggested that government bonds should be issued to ensure balance between assets and liabilities.