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Real rates to turn positive next year.

Bangkok Post (Bangkok, Thailand)

| October 05, 2005 | COPYRIGHT 2005 Bangkok Post. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan.  All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)Copyright

Oct. 5--Local interest rates are expected to climb above the inflation rate by the first half of next year, the governor of the Bank of Thailand said yesterday.

"We expect to see real interest rates in positive territory by the middle of next year if inflation remains within our expectations," said M.R. Pridiyathorn Devakula.

His comments signalled an end to nearly two years of negative real interest rates -- the difference between the inflation rate and the interest offered on deposits.

Annual inflation in September was 6 percent, the highest in nearly eight years, and was well above the projection by the central bank, which aims to keep it ...

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Source: HighBeam Research, Real rates to turn positive next year.

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