Man wading through flooded station in Bangkok last November
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Thailand floods pose a policy dilemma for central bank

The recent flooding in Thailand could pose difficulties for the country's central bank, as a combination of price rises and slowing economic growth makes interest rate decisions harder.

Car assembly plants and electronic factories were forced to close and farmland was flooded during the floods, which peaked in October and November 2011, causing a drop in output and increasing the price of some everyday goods.

The BBC's Rachel Harvey reports from Bangkok on how the economic impact of the floods poses a dilemma for Thai policymakers.

  • 04 Jan 2012