BANGKOK, 14 July 2011 – The Monetary Policy Committee (MPC) of the Bank of Thailand has unanimously resolved to raise the policy interest rate from 3% to 3.25% upon mounting concerns over the rising inflation.
According to BoT Assistant Governor for Monetary Policy Group Paiboon Kittisrikangwan, the MPC had a unanimous vote on 13 July to increase the key policy rate by another 0.25%. The rate adjustment was aimed at maintaining the country’s economic stability and taming the inflation.
The MPC forecasted that the inflation rate would remain high as a consequence of the energy price hike and continuing price adjustment of ready-to-eat food.
Although the government measures to shoulder people’s cost of living have been extended, potential policies of the incoming government such as the minimum wage increase, plus its spending plan in the future are likely to drive the national inflation up.
The policy interest rate has been raised for the sixth time in a row since 1 December 2010.
