The Bank of Thailand (BoT) said the country’s economy is still on the path to recovery, but warned the private sector that the interest rate has a tendency to rise gradually.
After attending a meeting of BoT and private sector representatives on Tuesday morning, Thai Chamber of Commerce deputy chairman Pongsak Assakul said the central bank had reported that the country’s overall economic situation was slowly recovering and was not heavily hit by the political situation.
But the BoT was concerned that the tourism industry could be severely affected by the recent political unrest, Mr Pongsak said.
“The central bank also warned the private sector that the interest rate will likely rise steadily, as it has been kept at a low level for a long time,” he said.
The private sector wanted the baht’s value to be closer to the currencies of other trade partners even though the BoT insisted the Thai currency was not much stronger than other currencies in the region, he said.
Bangkok Post
15/06/2010