Policy rate raised to 3.50%

Policy rate raised to 3.50%

Bangchak Petroleum president
Anusorn Saengnimnual

The Bank of Thailand raised its policy repurchase rate to 3.50%, up 0.25 percentage points, on Wednesday, as Bangchak Petroleum announced it will begin paying the new 300 baht daily minimum wage early next year.

BOT assistant governor Paiboon Kittisrikangwan said the central bank's Monetary Policy Committee (MPC)  raise its policy rate another 0.25 percentage points to 3.50 per cent, citing inflationary pressure.

Increased risk in global key economies was also pressuring the Thai economy, although it retained growth momentum, Mr Paiboon said.

Despite the latest policy rate hike, the real interest rate remains negative at -0.35 per cent from -0.6 per cent previously, the assistant governor said.
He said the MPC  will closely monitor global economic developments and inflationary pressure and stands ready to take necessary action to ensure sustainable growth for the country's economy.

Bangchak president Anusorn Saengnimnual said Thailand's biggest oil company will increase the daily minimum wage of workers at its outlets nationwide to 300 baht early next year.

Mr Anusorn said there will be no problem for Bangchak in raising the daily minimum from 250 baht to 300 baht to comply with the Pheu Thai-led coalition government's policy, but workers must also become more efficient.

"Bangchak will not increase the working hours of workers at its fuel outlets and is ready to shoulder the seven satang per litre increase in labour costs," he said.

Bangchak, the majority state-owned oil refiner, also supported the government's policy to give energy credit cards to drivers of cabs and motorcycle taxi and credit cards for farmers, Mr Anusorn added.

He said all 500 outlets of Bangchak across the country would accept the credit cards, to be issued by all financial institutions.