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Asia-PacificJanuary 31 2011

Q&A: Prasarn Trairatvorakul on raising rates and a rising baht

The recently appointed governor of Thailand's central bank has had an eventful first few months in the role, including a raising of the Bank of Thailand's benchmark rates by 25 basis points in December and having to closely monitor the baht, which caused unease among exporters by gaining 11% against the US dollar in 2010. He tells The Banker how these moves will affect his plans for 2011 and beyond.
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Q&A: Prasarn Trairatvorakul on raising rates and a rising bahtPrasarn Trairatvorakul, governor of Thailand's central bank

Q: What are the main factors that will affect Thailand's economy in 2011? What is your current growth forecast?

A: The forecast [for 2011] is 3% to 5% in real growth. This year we may end with 7.3% to 8%, based on our forecasts, so this is a slowdown, but this isn't a surprise or worry. Exports this year will be growing at 25% to 30% and next year will come down to 11% to 14% for obvious reasons. But we observe a strong continuity of domestic demand in terms of domestic consumption and private investment… I would say that growth next year will be more balanced.

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