BOT keeps interest rate unchanged at 3,25 %

Amid anxieties over increasing inflation due to rising oil and food prices, the Bank of Thailand (BoT) on Wednesday opted to maintain the policy interest rate unchanged at 3.25 per cent, a senior BoT official said.

Duangmanee Vongpradhip, assistant governor of BoT’s Monetary Policy Committee (MPC), said the panel opted at its meeting to keep the policy interest rate unchanged as core inflation had accelerated faster than earlier projected.

There are high risks that core inflation will exceed 3.5 per cent late this year, from 2.1 per cent in April, Duangmanee said.

If inflation continues to accelerate, the MPC would “stand ready to adjust the monetary policy stance,” she said. (TNA)

The inflation poison starts to enter people’s mind, and even at the BOT (after a lot denials).

We have to admire the irony of the logic at work there : “inflation rises more than expected, therefore we stay… steady” (usually, higher inflation leads to higher interest rates) ! 😉

Central banks around the world have now the same insane logic. But why are they afraid to tighten monetary policy ? Why are they terrified, from Washington to Frankfurt, from Beijing to Djakarta to Bangkok ? And furthermore, they keep telling us that the economic growth around the world is satisfactory (+5 and even +6 % GDP growth forecasted in Thailand in 2008 ! ) ?

The answer is simple : artificial GDP boost obsession and the fear to create an implosion of the many assets bubbles we have.

And you can be sure that this little game is going to get even more silly. When inflation will be really out of control, the central banks will continue to tell people “watch out ! We are going to increase interest rates if it continues…” like a school teacher who is afraid of his students and always delays punishment 😉

The aim of this silly game is to gain a little bit of time... Before a massive deflation and trillons of USD of so called “value” simply destroyed, vaporized.

“Five more minutes mister executioner, please”.

1 Response to “BOT keeps interest rate unchanged at 3,25 %”

  1. 1 fall 22 May 2008 at 12:41 pm

    Does she mean we actually have “monetary policy”?!?

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Thailand Crisis

Coup, Economic slowdown, Terror In the South... The situation is worsening in Thailand. Bumpy road like often before.

But this time, it's different.

The key to understand the present turmoil is the inevitable... succession of King Bhumibol.

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