Thailand: Central Bank Raises Interest Rates by 25 Basis Points to 3.50 Percent
Today Bank of Thailand raised its key interest rate by 0.25% to 3.50%. This decision was already expected by economists after inflation reached 8.9% last month.
After raising fuel prices consumer confidence dropped in Thailand and Finance Minister Surapong Suebwonglee already acknowledged that Thailand may not reach its GDP growth target of 6% since higher oil and food prices are a major threat to growth. In the first quarter of 2008 the economy still grew at a rate of 6%.
The stock market continued to fall among concerns of higher interest rates and more protests against Prime Minister Samak Sundaravej government.
