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Surplus of liquidity recedes in Thai money markets.

Knight Ridder/Tribune Business News, November, 2004

By Parista Yuthamanop, Bangkok Post, Thailand Knight Ridder/Tribune Business News

Nov. 15--Excess liquidity in the money markets is receding, with growth in lending increasing at a faster rate than growth in new deposits, according to Tarisa Watanagase, a deputy governor of the Bank of Thailand.

Reduced liquidity would certainly lead to some interest rate adjustments in the market, although authorities say this would hinge in part on the position of individual banks. According to the central bank, outstanding credit in the banking system currently stands at 5.29 trillion baht, up 9.6 percent from last year while deposits total 5.5 trillion baht, up 3.3 percent from the year before.

Dr Tarisa said concerns about a possible household...

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