I Get By With Alittle Help From My Friends....
Would you like to react to this message? Create an account in a few clicks or log in to continue.
I Get By With Alittle Help From My Friends....

Dinar Outcast


You are not connected. Please login or register

Inflation pressures in Southeast Asia

Go down  Message [Page 1 of 1]

1Inflation pressures in Southeast Asia Empty Inflation pressures in Southeast Asia Sat Jul 03, 2010 5:03 pm

littlekracker



Inflation pressures in Southeast Asia
July 3,2010

Central banks in Southeast Asia have started to unwind easy monetary policies to tackle inflationary pressures as the region’s economies continue their recovery from the global recession.

Malaysia has raised rates twice this year, in March and May, as part of efforts to unwind crisis measures. The Philippines raised one of its rates on January 28. Vietnam, struggling to put a floor under its dong currency, raised rates in December.

Economists expect others to follow but the timing depends on how far and how fast prices rise. The rippling impact of the euro zone’s debt problems on the global economy is a wild card.

Below is a snapshot of Southeast Asian inflationary pressures — and how policymakers are responding.

THAILAND

Annual headline inflation eased in June from May while core inflation, which the Bank of Thailand uses to guide policy, stayed near the bottom of the central bank’s target range, but economists said interest rates may still go up in July or August.

Headline inflation was 3.3 percent in June after May’s 3.5 percent while core inflation dipped to 1.1 percent from 1.2 percent, its highest since March 2009. The BOT’s target range is 0.5-3.0 percent.

The BOT is keen to raise rates from a record low of 1.25 percent, maintained since April 2009, as inflationary pressures are expected to rise next year in line with economic growth.

But the finance ministry has said it does not expect a rate rise until the fourth quarter, saying inflation should remain subdued after the government extended subsidies on utilities and public transport.

Back to top  Message [Page 1 of 1]

Permissions in this forum:
You cannot reply to topics in this forum