(RTTNews) - Wednesday, in a widely expected move, the Bank of Thailand raised its key interest rate in order to reduce rising inflationary pressures and to support economic growth.

The Bank of Thailand hiked its policy interest rate by 25 basis points to 3.75% per annum with immediate effect. The decision was in line with the consensus forecast. The central bank expects the increase would bring domestic interest rates to the levels that would continue to support economic growth.

In a statement accompanying the monetary policy announcement, the central bank said the rate-setting committee assessed that the risks to inflation remained an important issue of concern given the elevated level of inflation and inflation expectations, as well as uncertainty of oil prices in the periods ahead. However, the apex bank expects a decline in oil prices and the effect of the government’s measures to ease the cost of living to reduce inflationary pressures in the immediate future.

In the second quarter, weak domestic demand had slowed down the Thai economic growth to 5.3% from 6.1% increase recorded in the first quarter. Going forward, the central bank expects the downward trend in global oil prices and robust export growth to support economic growth.

In other news, the National Bureau of Statistics announced that China’s consumer confidence indicator increased to 94.5 points in July from 94.1 points recorded in June. Simultaneously, the customer satisfaction index rose to 90.8 points from 90.6 points recorded in June. Meanwhile, the consumer expectations climbed to 96.9 points in July from 96.5 points in June.

According to Singapore’s Department of Statistics, Business Receipts Index for services industries climbed 13.3% year-on-year in the second quarter. Excluding financial and insurance services, the index increased 13.9%. Among the main industry subgroups, the IT services industry logged the biggest turnover increase of 25.9%. On a quarterly basis, total business receipts edged up 1.3% in the second quarter, while excluding financial and insurance services, business receipts was up 1.6%.

Taiwan’s Council for Economic Planning and Development reported that its composite leading index decreased 0.6% to reach 107.4 in July, after falling 0.4% in the prior month. The index fell for the fourth straight month. According to the official report, the leading index displayed a downtrend since November 2007. The coincident indicator declined 0.7% in July to 109.6. The trend-adjusted coincident indicator fell to 96.7 from 97.8.

Vietnam has lowered fuel prices for the second time in August with immediate effect after crude oil prices recorded decreases. Retail price of 92-octane grade gasoline decreased to 17,000 dong per litre from 18,000 dong. Prices of the 95-octane petrol dropped to 17,500 dong per litre from 18,500 dong and that of kerosene decreased 18,000 dong per litre from 19,000 dong. At the same time, diesel prices were kept unchanged at 15,950 dong per litre. On August 14, Vietnam had lowered retail petrol prices by 5.3%.

For comments and feedback: contact editorial@rttnews.com

Copyright(c) 2008 RealTimeTraders.com, Inc. All Rights Reserved

Posted in Categories: Economy, Forex, Releases, Stocks.

Subscribe by RSS Subscribe by Email