Thai central bank may revise up economic growth rate for 2010

The Bank of Thailand's (BOT) Monetary Policy Committee (MPC) may revise up its gross domestic product (GDP) growth projection for 2010 during a meeting on June 14, committee member Praipol Khumsap said on Tuesday.

It is possible the GDP rate could be lifted from the current 4. 3-5.8 percent to as much as six percent if there is no more political turmoil and the problems of public debt in Europe and Hungary have no impact on the global economy, the Bangkok Post's website quoted Praipol as saying.

Even if the GDP growth rate contracted in the second quarter ( April-June) due to the recent political unrest, it would substantially expand during quarter 3-4, he said.

Therefore, it is possible the Thai economy would grow by six percent for the whole 2010.

Also, the MPC's benchmark repurchase rate (RP) is likely to be raised during the MPC meeting if there is no additional risk factor, he said.

"If the economic situation in Europe improves and domestic political crisis is over, the MPC could consider raising the policy rate and adjusting its GDP growth projection," Paibul Kittisrikangwan, BOT assistant governor for monetary policy echoed Praipol's remark.

The MPC's benchmark repurchase rate (RP) currently stands at 1. 25 percent.

Source: Xinhua