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Thailand: NIDA expert says Thai interest likely to be in 4.75-5% range for 2006
(Thai Press Reports Via Thomson Dialog NewsEdge)Section: Economy - Over the last year the Bank of Thailand adjusted the interest rate up several times, to keep track on the high inflation experienced during the year.
Dr. Montree Sokhatiyanurak, a financial expert from the National Institute of Development Administration, said that 2 factors will play major roles in interest rates for year 2006. Among inflation, which Bank of Thailand had been curbing last year with its interest rate adjustments. This year the inflation is expected to slow down as the oil price has a greater tendency to decline rather than increase. The U.S. Federal Reserve's interest adjustments would have to be monitored. Dr. Montree said it was inevitable for the Fed to raise rates further, and such phenomena would result in money movement between countries. For 2006 he forecast that the Fed's interest would reach 5%.
Dr. Montree said this year's interest rate in Thailand would probably be in the range of 4.75 to 5%. He also said that the deposits interest should adjust more substantially than inflation.
Lastly he concluded that 2006 should be a year where the public enjoy increased benefits from their savings interest whereas the loan-takers would have to exercise caution and utilize the borrowed money to the maximum benefit.
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