Thailand Says Price Risks Exceed Growth Threat as Output Slumps

Thailand’s borrowing costs are inappropriate as inflation risks exceed threats to growth, the central bank said as the government predicted industrial output will revive from the worst slide since 2009 after Japan’s quake.

The economy will expand 4.1 percent in 2011, driving consumer inflation to 3.9 percent for the year, the Bank of Thailand said in Bangkok today. Manufacturing output fell 6.67 percent in March, the most in 19 months, a report from the Office of Industrial Economics showed earlier.