Recently, Thailand’s stock index dropped 12.96 points, stopping at 987.77 points; in the same direction as other stock markets in the region; all in response to investor concern over Ireland’s debt problem, plus a possible interest rate increase again by China’s government to control inflation. Due to 4.4% growth in China’s consumer price index (CPI) in October, which was the highest rate in two years period, China therefore increased its interest rate 0.25% in October 2010, for the first time in three years. Moreover, this year, China’s government has already increased the ceiling reserve of commercial banks fives times over.
