Thailand needs different approach to reign inflation

BANGKOK: -- Bank of Thailand Governor Tarisa Watanagase insisted that Thailand and the rest of Asia are in the different economic situation from the US, which would lead to different monetary approaches.

As the Federal Reserve Board yesterday maintained the Fed fund rate at record lows, Tarisa said that due to buoyant economy in Asia, there are concerns on inflation and economic bubble.

"We need a different policy. Our economy is on the upward track with continued growth in exports and domestic consumption momentum. The fiscal and monetary policies would then be less relaxed," she said.

Given the risks to the recovery, the Fed left a key bank lending rate at between zero and 0.25 per cent. The rate has remained at that level since December 2008. New home sales in May plunged 33 per cent. Underlying inflation has trended lower. The Fed also repeated a pledge to keep the benchmark interest rate near zero for for an extended period.

-- The Nation 2010-06-24

"to rein in inflation"?