Raising Interest Rates in Thailand

Currently the Bank of Thailand decided that interest rates should be raised on credit cards. There is a 18% annual rate limit for credit cards and regulators are beginning to increase their deposit and loan rates. Over the past year issuers have already rising 3-4%. The joint venture between Bank of Ayudhya and GE Consumer Finance expects and increase of !5% with projected card growth of 100,00. The joint venture company had 550,000 cards by the end of 2004. As the managing director of Krungsriayudhya Card, Sukdee Chongmankhong, said "If deposit rates increase, the central bank will allow us to raise rates for sure".

The Japanese economic is the exact opposite. The idea is to keep interest low so that it will stimulate exports. The results of keeping interest low, a shortage; forcing the Japanese to save money (low access to credit) instead of taking out loans.

Thailand will have higher credit card rates which could eventually lead to a surplus. Is that the best way solve the economic problems of Thailand? Would this discourage consumers to use credit cards?