Interest rates : the BOT discovers -again- that water is liquid

The Bank of Thailand is ready to take monetary policy action to tackle high inflation and doesn’t believe a rate hike will hurt economic growth much, the central bank’s governor Tarisa Watanagase said Monday.

The comments will reinforce market expectations of an interest rate hike in the near future but Tarisa ruled out calling an early meeting of the Monetary Policy Committee.

The next meeting is scheduled on July 16.

Any increase in the policy interest rate is unlikely to have a significant impact on spending or economic growth, Tarisa told reporters in a press conference.

Our real interest rate is negative, therefore if there is any hike in the policy interest rate, any affect on spending and economic growth won’t be much,” said Tarisa. (Nation)

Sure… It has been negative since… january because the BOT is on hold at 3,25 % ! (real interest rate = interest rate – inflation) since july 2007 (look at the chart here).

Again and again, Tarisa discovers that water is liquid, and other basic principles of physics and economy (inflation for instance). 😉 What a joke.

And 4 months ago, she was ready to REDUCE rates... And 3 months ago she supported the “stimulus campaign” from the goverment…

Furthermore, the large thai banks have already increased they lending and deposit rates (read here), by more than 0,25 point !

Therefore, like always, the BOT is following. Like a pathetic headless chicken.

2 Responses to “Interest rates : the BOT discovers -again- that water is liquid”


  1. 1 thailand Hotels 17 June 2008 at 6:24 am

    Don’t serious about money ,Take a deep breath and relax at the sea.

  2. 2 thaicrisis 17 June 2008 at 7:12 am

    That’s a good idea Thailand Hotels… You should give us the address of your venue.

    But the problem is : to go to the sea and relax in a nice resort… we need money. Serious money.
    😉


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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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