Minimum lending rates were increased from 6.75 per cent to 7 per cent, minimum retail rates from 7.25 per cent to 7.5 per cent, and minimum overdraft rates from 7 per cent to 7.25 per cent.

While Bangkok Bank's rate movement took effect yesterday, Krung Thai Bank's changes take effect today.

The latest round of rate hikes - the fourth since September - was led by Kasikornbank last week.

On Monday, the Bank of Ayudhya and Siam City Bank increased their deposit and lending rates by 25 basis points, effective from yesterday.

Meanwhile, the central bank's Monetary Policy Committee is widely expected to increase its policy-signal rate by 25 basis points to 4.5 per cent at a meeting today, in line with the Bank of Thailand's efforts to control inflation.

BOT assistant governor Atchana Waiquamdee said yesterday the central bank gave top priority to controlling inflation in its management of monetary policy.

She said inflationary pressures had come from increasing oil prices and higher wages. Yesterday's increase in the retail price of sugar will affect the inflation rate by 0.02 per cent, while the recent hike in electricity costs will up inflation by 0.35 per cent. Higher public bus fares will also push up the inflation rate, by 1.2 per cent.

She said the current political turmoil would not have much impact on the economy, but did not comment on how the situation would affect investment.

Atchana added that the global economy had picked up as many central banks have raised policy interest rates.

This will help bolster Thai exports.

Somruedi Banchongduang,

Anoma Srisukkasem

The Nation