January 17, 2008
BANGKOK - The central bank on Wednesday left its key interest rate unchanged at 3.25 percent amid concerns over high oil prices and the state of the US economy.
The Bank of Thailand said in a statement that consumption, investment and exports were improving, but stressed that inflation would continue to rise due to soaring world oil and commodities prices, according to AFP.
"The uncertainty surrounding the risks to growth and inflation has risen, which should be monitored closely going forward," Duangmanee Vongpradhip, assistant governor of the Bank of Thailand, said in statement.
"The MPC (Monetary Policy Committee) therefore decided to keep the policy interest rate at 3.25 percent per annum."
Wednesday's move was in line with the market's forecast, and the rate has been steady since August 2007.
Thailand's inflation rate rose in December to a one-year high of 3.2 percent year-on-year, a hike blamed on surging energy costs and rising food prices.
Core inflation, which excludes volatile food and energy prices, rose 1.2 percent year-on-year in December, and came in at 1.1 percent for 2007.
The central bank said Wednesday that core inflation was not expected to exceed 3.5 percent in the next two years.
