Results 1 to 6 of 6
  1. #1
    Mid
    Mid is offline
    Thailand Expat
    Mid's Avatar
    Join Date
    Aug 2007
    Last Online
    @
    Posts
    1,413

    Thailand : Double Digit Inflation



    Thai central bank chief concerned over rising inflation

    BANGKOK, June 13 (TNA) Bank of Thailand Governor Tarisa Watanagase on Friday voiced concerns regarding declining returns on savings and faster spending --rather than saving -- by consumers who in anticipation of higher inflation are buying now, stating that such action can push inflation to the double-digit level this year.

    "Psychologically, if people think that the inflation rate will increase sharply, they will accelerate their spending. So, it is likely the inflation will surge to a double-digit level this year," she said.

    Regarding a proposed reduction of the policy interest rate to stimulate the economy, she said such an action is impossible because the interest cut would boost the spending and so fuel the inflation rise.
    "Reducing interest will encourage spending, which leads to a higher inflation rate. So, we can see almost all countries instead opting to raise interest rates," she said.

    "In the United States, the Federal Reserve had previously cut key interest rates in a bid to stimulate the ailing economy, which was almost in recession at that time. Now, it begins to see a need to consider the interest hike to rein in higher inflationary pressures."

    Mrs. Tarisa said the central bank is a sole agency responsible to oversee inflation. Accordingly, the bank must do its best to control inflation to boost consumer confidence. Otherwise, the inflation will surge incessantly.

    The Commerce Ministry stated earlier that the consumer price index in May surged 7.6 per cent from the same month last year and 2.1 per cent from the previous month due to people's spending on education at the opening of new semester and higher transport costs upon the oil price hike. (TNA)

    enews.mcot.net

  2. #2
    Whopping Member
    benbaaa's Avatar
    Join Date
    Nov 2005
    Last Online
    06-06-2017 @ 03:52 PM
    Location
    In the comfy chair
    Posts
    5,549
    The Bank of Thailand are meeting later to decide if they should raise interest rates or cut them.


  3. #3
    ding ding ding
    Spin's Avatar
    Join Date
    Jul 2006
    Last Online
    @
    Posts
    12,608
    ^ The BOT wont toss a coin, they will go out into the countryside in a convoy of VIP coaches and have the police stop all the traffic along the way. When they arrive in the countryside they will study the bark on some trees to find lucky numbers that will guide them to their decision. after staying at an expensive resort overnight they will return to Bangkok and leave the rate unchanged.

  4. #4
    Thailand Expat Bobcock's Avatar
    Join Date
    Feb 2006
    Last Online
    @
    Posts
    15,842
    I think we should be careful what we say from now on on this forum.

    It is quite obvious that Spin is a cabinet minister.

  5. #5
    Thailand Expat
    sabang's Avatar
    Join Date
    Feb 2006
    Last Online
    Yesterday @ 08:31 AM
    Location
    BackinOz
    Posts
    30,807
    I'm amazed they noticed.

  6. #6
    Tax Consultant
    Thormaturge's Avatar
    Join Date
    Jul 2007
    Last Online
    @
    Location
    Bangkok
    Posts
    9,892
    Quote Originally Posted by Mid View Post
    The Commerce Ministry stated earlier that the consumer price index in May surged 7.6 per cent from the same month last year and 2.1 per cent from the previous month due to people's spending on education at the opening of new semester and higher transport costs upon the oil price hike. (TNA)
    Another interest rate hike on the way, and it needs to be a big one to keep up with those figures.

    Saw the first ThB 44 litre of petrol yesterday, and considering it is only a few weeks when forecourt prices were all under ThB 30 I woud say 10% + inflation is already here. I even noticed a massage room had incresed it's prices by 20% this week.
    I see fish. They are everywhere. They don't know they are fish.

Thread Information

Users Browsing this Thread

There are currently 1 users browsing this thread. (0 members and 1 guests)

Posting Permissions

  • You may not post new threads
  • You may not post replies
  • You may not post attachments
  • You may not edit your posts
  •