Wednesday, April 20, 2011

Bank of Thailand Raises Rate 25bps to 2.75%

The Bank of Thailand increased its benchmark 1-day bond repurchase rate by 25 basis points to 2.75% from 2.50% previously on concerns that the Thai economy is overheating.  Bank of Thailand Governor Prasarn Trairatvorakul previously noted that (growth is) "less of a concern so the risk balance is tilted toward inflation."  Thailand reported consumer price inflation of 3.14% in March, with core inflation (excluding fresh food and fuel) at 1.62% on an annual basis, compared to 1.45% in February, while the Bank works to an official inflation ceiling target of 3.0%.


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