Thailand May Increase Borrowing Costs

Thailand's central bank may increase interest rates for the fourth time in seven months amid fears of inflation caused by rising wages and oil prices, reports Bloomberg.


Most of the economists surveyed by Bloomberg News expect the Bank of Thailand to raise its benchmark one-day bond repurchase rate by a quarter of a percentage point to 2.25 percent this week.


In December 2010, Thailand's inflation accelerated to 3 percent. Early this year, the government increased the daily minimum wage and the retail price of palm oil.


Asian countries raised rates last year as the region rebounded from the financial crisis, pushing labour and commodity costs higher.




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