‘Rate hike no cause for alarm’

COMMERCE: The increase in the policy rate issued by the Bank of Thailand’s Monetary Policy Committee (MPC) will not increase public debt, said deputy government spokeswoman Rachada Dhnadirek.

She said that despite the MPC raising the rate from 0.25% to 0.75% per annum, state-run banks have announced they will keep the current borrowing rate as long as they can or until the end of the year.

Ms Rachada said the MPC’s decision to boost the policy rate was aimed at managing interest rates so the economy can expand at a steady level without undue inflation. Public debt will account for 61.3% of gross domestic product, down from an earlier forecast of 62.6%, at the end of the current fiscal year next month, Ms Rachada said.