BOT's key interest rate seen suitable

BANGKOK, July 9 (TNA) - A senior banker considers Thailand's policy interest rate at the present 2.5 per cent suitable for national economic conditions currently, as the Thai baht has already depreciated. Chatchai Payuhanaveechai, Executive Vice President of Bangkok-based Kasikornbank, assessed on Tuesday that the Monetary Policy Committee (MPC) of the Bank of Thailand (BOT) should decide at its next meeting on July 10 to maintain the policy interest rate at 2.5 per cent for a certain period, as the level is considered suitable. Besides, Chatchai noted, the MPC appears to fear if the BOT's key interest rate was too low, it would cushion Thailand's household debts and people could then invest their savings in risk assets, which could lead to an economic bubble in the country. Payungsak Chartsutipol, Chairman of the Federation of Thai Industries (FTI), meanwhile, said that the FTI would wait for the Thai Industries Sentiment Index (TISI) in June before reviewing its projection of the national economic growth rate this year. According to the FTA chair, if the TISI for the next three months continues to be positive, the FTI will maintain its economic growth forecast at 4-5 per cent this year, but if the TISI drops, it will revise the forecast downwards. (TNA)