Thailand: PrimaVest president says higher interest rates will curb asset management sector growth.

Section: Business News - Rising interest rates will significantly affect growth prospects for the asset management sector this year, according to Permpol Prasertlam, the president of PrimaVest Asset Management, the Bangkok Post reports.

"If banks continue to raise interest rates, then it will be very difficult to grow this year," he said.

Local banks have been raising their deposit holdings in preparation for the launch of the new Deposit Protection Agency later this month.

The rate increases have closed the gap between fixed deposit rates and yields offered from money market and short-term fixed income funds. Yields for capital-protection funds now …