BoT confidents inflationary rate would stay within target

BANGKOK, April 2 (TNA) -- The Bank of Thailand (BoT) is confident Thailand’s inflationary rate during the second half this year would stay within inflationary framework set by the central bank, used for fixing inflation targeting, said BoT governor Veerathai Santiprabhob. Inflation targeting is targeted at 2.5 per cent, plus or minus 1.5 percentage points, said Mr Veerathai, adding that although inflationary rate contracted in the past was caused out of concerns of tight money problem. Contracted inflation prevailing now is not worrisome because of declining oil prices, said Mr Veerathai. Thailand’s economy and domestic consumption are still expanding, he said. Inflation targeting is still used for fixing BoT’s policy interest rate, said Mr Veerathai, adding that fixing the rate would become more flexible because contracting inflation is caused by low oil prices. He insisted that light money would not erupt in the country. Meanwhile, the central bank has reserved money amounting 160 billion baht on expectations of high withdrawal during the annual Songkran festival, Thailand’s traditional New Year which falls between April 13 – 15, said assistant BoT governor Woraporn Tangsaghasaksri. High withdrawals up to about 30 billion baht, an increase of 3 per cent year-on-year, are expected at commercial banks one week before the festival, said Mr Woraporn. The increase would raise money reserved by banks to approximately 160 billion baht for people to withdraw, Mr Woraporn added. (TNA)