Thai central bank announced Wednesday it has decided to leave benchmark rate unchanged at 3.25 per cent in fears over higher inflation.

BOT assistant governor Duangmanee Vongpradhip said the bank is concerning wider gap between the US and Thai’s interest rates, which might welcome short-term capital infusion.

She said the central bank believes inflation might be tapered off by the second half in line with the global slowdown, spurred by the US’s starting recession.

Duangmanee said Thailand’s intrinsic interest rate is minus by 0.15, the lowest rate in the region, which may dissuade speculators to target at Thai currency.

Thai economy is reported healthy expanded in February with an increase in both consumption and investment levels due to flexible monetary policy and contingency government’s stimulus measures.