BOT expected to maintain key interest rate at 2.75%

BANGKOK, May 24 (TNA) - The Bank of Thailand or BOT's Monetary Policy Committee is expected to maintain its key interest rate or the repurchase rate at 2.75 per cent at its next meeting on May 29. Thanavat Polvichai, Director of the Center for Economic and Business Forecasting of the University of Bangkok-based Thai Chamber of Commerce, made the projection today, pointing out that Thai economy grew by 5.3 per cent in the first quarter of this year, which was satisfactory, while inflation ran at 3% per cent. Thanavat warned that a reduction in the repurchase rate could further lower the presently negative real interest rate and force depositors to invest in risky assets, namely stocks and real estate, which are showing signs of bubbles. The senior economist noted that the Thai baht value has also started weakening to the rate of 29.50 baht a US dollar, improving from the rate of 28.50 baht a US dollar last month, as the BOT has handled the baht value well. (TNA)