THAILAND: Interest Rates To Rise

October 2005
Asia Monitor: South East Asia Monitor Volume 1;Oct2005, Vol. 16 Issue 10, p1
Country Report
Country Report
The article reports that interest rates are set to increase further in Thailand as the Bank of Thailand remains concerned about a widening current account deficit, rising inflation, and a weak exchange rate. The country's central bank will need to be careful about raising interest rates too quickly, in case they should cause economic growth to slow even further. Higher interest rates are needed to counter rising inflation. Thailand's inflation rate reached a 7-year high of 5.6% year-on-year in August 2005, bringing the average inflation rate for the first eight months of the year to 3.8%.


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