Thailand Travel News: In signs that the Thailand economy is continuing to recover, the Thailand Excise Department announced that revenue collected last month had increased 81.84 per cent over the same period in 2008.

Excise Department director-general Areepong Bhoocha-oom said the department had collected Bt33.59 billion (about $US1 billion) last month, with the domestic car market contributing Bt6.11 billion ($US183 million).

Mr Areepong said this was an increase of more than 22 per cent year-on-year – the result of local manufacturers stimulating sales by releasing new models.

He said that while agricultural products had increased in price, the signs were that grassroots consumer spending power had increased and people were buying more.

The announcement comes less than a week after Thailand’s central bank, the Bank of Thailand (BOT), left official interest rates unchanged at 1.25 per cent.

The decision, by the BOTs Monetary Policy Committee (MPC), has prompted Siam Commercial Bank’s (SCB) Economic Intelligence Centre (EIC) to forecast rates to remain as they are until the second half of next year.

According to SCB executive vice president and chief economist. Sethaput Suthiwart-narueput. the MPC is unlikely to raise the rate soon because inflation is expected to decline in the third quarter.

“Usually, the central bank will send signals, such as concern about high inflation, so as not to surprise the market once action comes, but so far, there’s been noting”.

Mr Sethaput said the EIC did note expect to see an interest rate rise before the second half of next year and even then predicted a modest 50 basis point increase to 1.75 per cent.

By John Le Fevre

Thailand Travel News for December 15, 2009