However, he said it would be lower than the 6 per cent registered in the first quarter.

BOT sold dollars

Thailand's foreign reserves as of August 25 stood at US$58.7 billion (Bt2.2 trillion), down from $59.9 billion on August 18.

An official at the Bank of Thailand said yesterday that during the week in question, the central bank had sold dollars to suck in baht. This was done in a move to reduce excess liquidity following huge inflows of the greenback.

The Bank of Thailand also announced that its net forward position in the foreign exchange markets on August 25 was $6.3 billion, up from $5 billion on August 18.

TMB ratings stay

Standard and Poor's has maintained its credit ratings for TMB Bank at BBB-/Stable/A-3, despite the bank's completed share issue.  The agency considers TMB's capitalisation to be relatively weak, despite its having raised new capital of about Bt9.6 billion,

S&P said yesterday that TMB's loan quality was lower than the industry average due partly to its legacy loans and its capitalisation may face further pressure, as it will be used to support any incremental credit costs on its core business activities.

Separately, while maintaining its rating for TMB at BB+, Fitch Ratings yesterday came up with a positive outlook for the bank.

The agency maintains a positive outlook on TMB's ratings. It believes the bank's recapitalisation, together with the strengthening of its brand and network, should result in higher revenues and improved profitability in the medium term.