Bank of Thailand yesterday announced interest rates to fight inflation again

 Increase due to inflation pressures, the Bank of Thailand announced

yesterday to raise interest rates again. Echoes rising and inflation is

expected, Thailand, India and other emerging markets are poor recent

performance. Inflation has become the biggest problem faced by emerging

economies, has become a drag on stock market performance of the important

reasons.

emerging economies make moves against inflation

yesterday, the Bank of Thailand raised its benchmark interest rate announced

by 25 basis points to 2.25%, which is nearly 7 months the Bank of Thailand

has raised interest rates 4th . Bank of Thailand said that because of strong

demand in the country, coupled with rising international commodity prices,

Thailand, the future price level will continue to rise, inflation in

Thailand is facing severe pressure.

the Indian Central Bureau of Statistics data released yesterday show that

last year India's industrial production index in November was 317.9 points,

an increase of 2.7%, well below last month and 11.3% after the latest

amendments increase. Nevertheless, analysts generally expected, due to

soaring food prices, the recent increasing upside risks to inflation in

India this month, India's central bank will raise interest rates again. It

is reported that Indian Prime Minister Manmohan Singh to convene members of

the Cabinet meeting to discuss ways to curb rising food prices.

Bank of Korea will also hold the interest rate decision meeting on Thursday,

the market expects the central bank will keep rates unchanged, the central

bank president Jin Zhongxiu possible recovery by emphasizing the process of

developed economies face uncertainties, to try to play down expectations of

further tightening the market. However, the central bank will deliver price

stability measures aimed at curbing inflationary pressures.

Recently, the Bank for International Settlements, held discussions on the

global economy conference, officials of major central banks participating

countries agreed that the momentum of global economic recovery than

expected, but the fast-growing emerging economies face inflation risk. Some

analysts said that emerging economies face the threat of inflation could

become an important issue this year, one of the global economy, interest

rate tide will follow.

inflation of funds flee

emerging economies, the situation of rising prices and accelerating

inflation rates in Europe and America in stark contrast, investors worry

that emerging economies, the central bank will raise interest rates and a

series of disposable policy instruments to fight inflation, last year's

outstanding performance in the emerging markets that experienced a burst of

start of the year,

recently, India, Thailand, Indonesia and other countries turbulent stock

market, including the Indian stock market this year, the cumulative drop of

more than 5%. Meanwhile, the Thai baht, Indonesian rupiah and other exchange

rate has continued to decline. Royal Bank of Scotland in Singapore, foreign

exchange and interest rates in emerging markets strategist Pin Ru Tan said

that foreign capital must still worried about inflation, especially in

countries not to raise interest rates.

SEBI data showed that in a number of trading days ending Tuesday, the

foreign institutional investors were net sellers of shares, a total

withdrawal of $ 520,000,000 of the funds. Beginning of the year, emerging

markets have emerged signs of foreign capital to flee.

However, the Thai central bank deputy governor said the Ai check it, because

the United States to continue the quantitative easing policy, market

liquidity increases, this year there will be more capital inflows to

Thailand. Some analysts believe that, for emerging economies, is not out to

stimulate interest rate policy, but simply to match the inflation rate,

inflation and economic impact of matching market expectations is the real

key.