Central Bank & Gov At Loggerheads?

[melbat]

I read on the BBC business website today that the Thai Government and Central bank are at loggerheads over how to tackle inflation. The bank want to raise interest rates to hold down inflation which consumer inflation is running now at over 9% and the government want to boost economic growth rather than tackle inflation. How do readers think this will effect the Thai baht in the future. From the BBC report this situation is very serious and in the end it might mean the sacking of prominent Thai bank personnel including the chairman of the Central Bank.

Edited August 11, 2008 by melbat

[Pakboong]

I read on the BBC business website today that the Thai Government and Central bank are at loggerheads over how to tackle inflation. The bank want to raise interest rates to hold down inflation which consumer inflation is running now at over 9% and the government want to boost economic growth rather than tackle inflation. How do readers think this will effect the Thai baht in the future. From the BBC report this situation is very serious and in the end it might mean the sacking of prominent Thai bank personnel including the chairman of the Central Bank.

Either way we lose. I would prefer inflation as it should elevate the dollar.