Results 1 to 4 of 4
  1. #1
    Mid
    Mid is offline
    Thailand Expat
    Mid's Avatar
    Join Date
    Aug 2007
    Last Online
    @
    Posts
    1,413

    Thailand Raises Key Rate for First Time Since 2008

    Thailand Raises Key Rate for First Time Since 2008
    With assistance from Michael Munoz in Hong Kong, Yumi Teso and Dan Ten Kate in Bangkok.
    Editors: Stephanie Phang, Tony Jordan

    July 14 (Bloomberg) -- Thailand’s central bank raised its benchmark interest rate for the first time in almost two years after deadly political protest ended last quarter without derailing the economy.

    Thai consumer confidence rose for the second straight month in June even after the nation’s worst political violence in almost two decades killed 89 people in April and May. Governor Tarisa Watanagase said last week the central bank will take “preemptive” steps to control inflation, as counterparts from Malaysia to Taiwan boost borrowing costs amid an Asian rebound.

    “The sentiment is right for the central bank to start their normalization now,” Usara Wilaipich, an economist at Standard Chartered Plc in Bangkok, said before the decision. “The latest economic data confirmed there was limited impact from the political unrest. As economic recovery is looking entrenched, the central bank will pay more attention to dealing with the inflationary pressure on the horizon.”

    The baht rose 0.1 percent to 32.33 per dollar today.

    Swaps, Bonds

    Thailand’s interest-rate swaps and bond yields have climbed as investors boosted bets the central bank will increase borrowing costs. The one-year onshore swap rate rose 30 basis points this month to 1.68 percent today, the highest since April 9. The yield on the 5.25 percent debt maturing in July 2013 has climbed 27 basis points to 2.7 percent, according to the Thai Bond Market Association. A basis point is 0.01 percentage point.

    Overseas sales helped Thailand weather two months of anti- government protests that hurt tourism and disrupted manufacturing at some factories. The Cabinet on July 6 extended emergency rule in a quarter of the country, including Bangkok, for another three months after using troops to disperse opposition protesters in May.

    Thailand’s $272 billion economy grew 12 percent in the first three months of this year, the most since 1995, as the global recovery spurred overseas orders. Exports rose 42.5 percent in May, the biggest gain since July 2008.

    Fears Fading

    Automakers Ford Motor Co., General Motors Co. and Mitsubishi Motors Corp. announced plans to build new factories or expand production in Thailand in the past month.

    “Thailand’s export upswing could still falter if the global recovery deteriorates, but such fears are fading,” Matthew Circosta, an economist at Moody’s Analytics in Sydney, said in a note yesterday. The central bank “should feel confident” after Malaysia, Taiwan and South Korea, which are also export-dependent, increased their borrowing costs recently, he said.

    Thailand’s central bank raised its benchmark rate from the lowest level since July 2004. Malaysia last week raised its overnight policy rate for a third time this year to 2.75 percent. South Korea, Taiwan and India have also increased borrowing costs as their economies strengthened.

    Thai consumer price gains slowed to 3.3 percent in June, while core inflation, which excludes fresh food and fuel, cooled to 1.1 percent, staying below the central bank’s target of less than 3 percent. The bank has said state subsidies for transport and fuel were masking price increases, and inflationary pressure may rise in the second half of the year as the economy recovers.

    businessweek.com

  2. #2
    Mid
    Mid is offline
    Thailand Expat
    Mid's Avatar
    Join Date
    Aug 2007
    Last Online
    @
    Posts
    1,413
    The Bank of Thailand's Monetary Policy Open Committee meeting has decided to increase its policy interest rate by 25 basis points to 1.75%.

    The committee reasoned that second quarter's GDP growth was higher than expected.

    Thai-ASEAN News Network

  3. #3
    Out there...
    StrontiumDog's Avatar
    Join Date
    Jul 2009
    Last Online
    @
    Location
    BKK
    Posts
    40,030
    GHB to peg loan interest rate till year-end : National News Bureau of Thailand

    GHB to peg loan interest rate till year-end

    BANGKOK, 25 August 2010 (NNT) – The Government Housing Bank (GHB) confirms to peg its loan interest rate until year-end although the Monetary Policy Committee (MPC) has adjusted the policy interest rate up by 0.25%.

    GHB President Khan Prachuapmoh stated that the bank would further maintain its loan interest rate despite the fact that the MPC of the Bank of Thailand (BoT) had increased the policy interest rate from 1.50% to 1.75%. He reasoned that the bank was not keen on putting more financial burden on customers and the financial liquidity of the bank was still healthy.

    Mr Khan asserted that the GHB would consider adjusting its interest rate either after the end of this year or in the case that the MPC had increased the rate by more than 0.75-1%.
    "Slavery is the daughter of darkness; an ignorant people is the blind instrument of its own destruction; ambition and intrigue take advantage of the credulity and inexperience of men who have no political, economic or civil knowledge. They mistake pure illusion for reality, license for freedom, treason for patriotism, vengeance for justice."-Simón Bolívar

  4. #4
    Out there...
    StrontiumDog's Avatar
    Join Date
    Jul 2009
    Last Online
    @
    Location
    BKK
    Posts
    40,030
    http://thainews.prd.go.th/en/news.php?id=255308260036

    Korn: RP to be adjusted again this year

    BANGKOK, 26 August 2010 (NNT) – Finance Minister Korn Chatikavanij has expressed belief that the repurchase rate (RP) will be adjusted again later this year.

    Mr Korn indicated that since the Monetary Policy Committee (MPC) was set to convene on 20 October and 1 December this year, further increases of the RP rate were likely to be imposed. However, he said any adjustment of the policy interest rate must be made in correspondence with the economic condition. The Minister also viewed that the Thai economy during the latter half of this year would be slower than in the first half.

    Yesterday, the MPC decided to raise the RP rate by 0.25%, pushing it up from 1.5% to 1.75%, mainly because the Thai economy in the first half of the year had grown beyond expectation.

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
  •