Central bank concerned about inflation in 2008

BREAKING NEWS - Sunday December 23, 2007

Central bank concerned about inflation in 2008

The Bank of Thailand (BoT) will monitor inflation in Thailand in 2008 closely because high inflation could adversely impact Thai industry by pushing up operating costs and negatively affect economic growth in the country, according to BoT governor Tarisa Watanagase.

Next year's economic direction depends on external factors as well, especially the performance of economies in the US and other developed countries, and Thailand's economy could be hit if economies in those countries slowdown, Mrs Tarisa said.

Although domestic consumption spending and private investment had begun to start recovering in the third quarter this year, the central bank will have to watch their direction in 2008, she said.

The BoT will try to maintain the inflation rate in 2008 to move within its set parameters in order to assist investors to forecast their future operating costs, Mrs Tarisa said.

And in order to prevent inflation from being a problem, the central bank retained its policy interest rate unchanged at its last meeting. (TNA)

15:34 Dec 22, 2007

Bangkok Post