August 28, 2008
BANGKOK (AFP) - The Bank of Thailand on Wednesday decided to raise interest rates by 0.25 percent to 3.75 percent in order to try to tame inflation.
The central bank decision, effective immediately, contradicted government advice.
Duangmanee Vongpradhip, assistant governor at the Bank of Thailand, said the Thai economy had grown slowly in the second quarter because of lower domestic demand, lower government spending and high inflation.
"Lower oil prices and the effect of the government's anti-poverty measures have reduced inflationary pressure," she said in an official statement.
But despite those measures, inflation is expected to remain high while oil prices remain volatile.
