Tensions between the Thai government and the country's central bank over monetary policy boiled over yesterday, with the new deputy finance minister calling for the bank's governor to resign.

The Bank of Thailand last month raised its benchmark interest rate for the first time in two years, increasing it 25 basis points to 3.50 per cent. Data released last week, meanwhile, showed inflation in July rising to a 10-year high of 9.2 per cent.