The Bank of Thailand’s monetary policy commission agreed to raise key repurchase rate by 0.25 percent to 1.50 from currently 1.25 over a vision that inflation may be increasing in the second half of the year in line with the country’s on track of recovery.

The central bank said the economic turnaround will created even more jobs and spending.

Moreover, the government’s announcement of a general salary raise package for state-workers nationwide has been boosting the consumption.

Paiboon Kittisrigangvan, director of monetary policy, commented that the country has shown sign of expanding in export, pushed by the global recovery. Most central banks also raise their key policy rate to support growth.

Mr. Paiboon said the tourism industry will lead the recovery, while the consumption and production are projected to expand through the rest of the year as intensive street protest during April and May has limited impact on the economic.

“The low interest period is over. The rate now should be flexible and adaptive in line with the global and the regional market,” he commented.