Thailand: Central Bank raises interest rate
April 20, 2011
At its latest monetary policy meeting on 20 April, the Central Bank raised the one-day repurchase rate by 25 basis points to 2.75%, in a decision broadly expected by the market. With the move, which represented the sixth lift in seven meetings, the Bank has raised the policy rate by 150 basis points since it began removing the policy stimulus in July 2010. The Central Bank stated that the economy continues to benefit from strong export growth and solid domestic demand. Inflationary pressures increased, fanned by strong growth in domestic demand as well as persistently rising oil and commodity prices.
Author: Ricardo Aceves, Senior Economist