BOT focuses intently on oil prices
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The Bank of Thailand is keeping a close watch on the recent oil spikes, as oil prices are exceeding to the Monetary Policy Committee's assumption.
Methee Supapongse, a senior director, said that the MPC would discuss this issue intently at the March 21 meeting.
"Inflation concerns are creeping up, as this may affect the economic expansion," he said.
The central bank expected the oil price to average $103.3 per barrel this year. Oil prices tended to be higher in the first half, with the average price of $106.5 per barrel against $100 in the second half.
This year, oil prices average $112 per barrel to date.
Prices have escalated on signs of economic recovery in key economies like the US and Japan. Moreover, tightening sanctions against Iran, Opec's second-biggest producer, are raising tension on the commodity price.
