Foreign Capital Continues Flowing into Thai Stock and Bond Markets

He said foreign investors believed asset prices in Asia would increase due to the continued economic recovery of the region.

Investors were also satisfied with the improved economic fundamentals of Thailand as could be witnessed by a continued increase in local production and consumption. The country’s exports had also risen without interruption in terms value due to the global economic recovery and higher farm product prices. He said loans from commercial banks to the private sector are expected to continue growing this year and that employment is set to increase. These factors will contribute to the Thailand’s economic recovery.

Regarding an increase in the general and core inflation rates to 3.4 and 0.4 percent respectively in March, Mr. Bandid said it stemmed from the continued rise in product prices, particularly in the food sector, and the strong economic recovery.

However, the core inflation rate is expected to remain at a low level now, Mr. Bandid said, believed that higher inflation had not yet deterred Thailand’s economic expansion.

"The current inflation rate has not accelerated so rapidly that it can affect the economy, which is in a path of the strong recovery. However, the Monetary Policy Committee will take into account latest economic data, agricultural prices, the lifting of state economic stimulus measures, and global oil prices for its decision on the monetary policy," he said.