Thailand raises rate to fight inflation

BANGKOK: The Bank of Thailand raised its benchmark interest rate by a quarter of a point to 3.25% yesterday and signalled further tightening to come to tame inflationary pressures as the new government moves to boost growth and increase wages.

The rise in borrowing costs by one of Asia's most hawkish central banks follows China's tightening earlier last week for the third time this week as the region's central banks battle mostly homegrown price pressures.

Taiwan and India also tightened monetary policy last month.

Malaysia and the Philippines increased rates last month to tackle inflation.

Thailand's central bank expressed caution over potential inflation from the July 3 landslide election victory of the opposition Puea Thai Party led by businesswoman Yingluck Shinawatra, whose campaign promises include a 40% rise in the minimum wage from the national average. Reuters