tflixya's Blog

BANGKOK, May 15 - Thailand inflation rate is 5.0 from Jan and 5.3 with Mar last year,the rising food prices and fuel cost as the primary drivers of the Thailand inflation increase.That's impact on low-income people's spending and consumption of their households

Should the overhead costs of entrepreneurs and exporters increase in the future, it would definitely affect  the country's exports and current account balance.

Ms. Kirida said that rising oil prices would accelerate rising Thailand's inflation.

At present, inflation rates worldwide and as well as in Thailand had not yet peaked, but are likely to become saturated within this year.

It is projected the general inflation rate in Thailand would exceed 5 per cent this year because oil and food prices are likely to continue to stay high.

The cost of rice are increased by 2.4% to $21.6 that has been driven by both supply and demand factors, including shortages due to poor harvests, as well as growing populations in some rice-importing nations.

the Bank of Thailand would be able to weigh whether it would focus on economic growth or the inflation control in an implementation of the monetary policy. Although the headline inflation rate is still below 3.5 per cent now, she said, the central bank should
take into account the surging inflation rates because they had fueled people's cost of living.

    BANGKOK, May 13  -  Bank of Thailand (BoT) governor Tarisa Watanagase said Tuesday that Baht ongoing softening of the Thai currency against the US dollar.This's expected for a short-term basis while inflationary rate in Thailand is projected to continue rising on the back of  increasing in oil and commodity prices, baht which had fallen to about Bt32.20 against the dollar on the onshore market now  was considered lowest in the past two-and-a-half-month but the impact was still not too serious.

Thailand's economy,it grew more than 6 per cent during the first quarter this year with investment expanded 7.2 per cent during the period, exports up 21 per cent and the current account enjoyed a surplus of about US$3 billion.

This year, the country's current account is expected to enjoy a surplus of around US$4-7 billion due to disbursement by the government, said Mrs. Tarisa. The government-sponsored mega-projects will also help stimulate private investment in future.

Thailand's inflation last month rose to 6.2 per cent as global oil prices continued increasing, she said,
adding that the BoT would follow movements of goods prices closely.

Meanwhile, Deputy Prime Minister and Industry Minister Suwit Khunkitti said he was confident Thailand's economic growth during the second half this year would surpass the first half on the back of solid economic fundamentals and fine investment atmosphere.

The World Bank has now ranked Thailand 15th out of 178 countries among the most attractive countries for investment and the government will adjust investment regulations to facilitate foreign investors, said Mr. Suwit.

     Nattapol Chavalitcheevin, the president of the ThaiBMA, said the Finance Ministry had allocated 170 million baht last year to support the SRO programme.The Thai Bond Market Association (ThaiBMA) will become the Thai capital market's first self-regulated organisation (SRO) starting from later this year.

Once complete, the ThaiBMA would takeover regulatory duties for the bond market from the Securities and Exchange Commission.Eventually, the Association of Securities Companies, the industry body representing local brokers, would become the second SRO for capital markets, with a target for implementation by 2010.Mr Nattapol said the ThaiBMA would begin using its new market surveillance system, called TMS, later this year.

Ariya Tiranaprakit, an executive vice-president of the ThaiBMA, said volume manipulation and excessive markups and markdowns were the most common irregularities found following a review of 2007 transactions.

Ms Ariya said the ThaiBMA could take action against market participants by issuing warnings, imposing probation periods and fines or withdrawing membership from the association. ThaiBMA would have primary responsibility for regulating and monitoring local participants and market trade. The SEC would continue to have ultimate responsibility for enforcement of market rules

 he central bank was the most active issuer in the market in the first four months of the year, with 2.5 trillion baht in debt issued compared with 1.3 trillion the same period last year.

''The market expects that the Bank of Thailand will continue to use the bond market as a tool for monetary policy over the next two years, or until the US shows an economic recovery,'' Mr Nattapol said.

Corporate debenture issues are expected to reach 300 billion baht this year, up from earlier targets of 200 billion, largely driven by new offerings from local banks. Some 65 billion baht in corporate debentures were floated in the first four months of the year, with over half raised by two banks.

Another 35 billion baht in bank-issued debt is scheduled to be issued this month.

    The Bank of Thailand is unchanging interest rates at its next meeting on May 21.Tarisa Watanagase said that even though inflation had increased with rising global oil prices, core inflation, which excludes food and energy prices, was expected to remain under the MPC's 3.5% target.

The central bank's Monetary Policy Committee (MPC) has maintained its one-day repurchase rates unchanged at 3.25% since this year.

Dr Tarisa said that ''Higher inflation will be a key factor for the MPC to consider when setting monetary policy. If inflation, economic growth trends and demand change significantly, the MPC will need to reassess its stance,'' .But  core inflation, which excludes food and fuel, remains under target. Overall economic demand remains below the point where price stability is affected. The consumer price index, reflecting headline inflation, reached 6.2% year-on-year in April. Prices rose 1.8% in April from the previous month.But core inflation rose more modestly, at 2.1% in April year-on-year and 0.6% month-on-month.that make to hight interest rate around the world.