Thai policy rate expected to rise at August meeting – c.bank official

0

BANGKOK, July 14 (Reuters) – Thailand’s central bank is very likely to raise its key rate at its August meeting, a senior manager said on Thursday, as other central banks moved to tighten monetary policy.

The baht’s weakness is still in line with that of trading partners and competitors and the central bank is ready to intervene if the Thai currency weakens too much, said Don Nakornthab, senior director at the Bank of Thailand (BOT), on the TAM. -GIE YouTube channel.

The baht hit 36.66 to the dollar on Thursday, the lowest level in more than 15 years.

Join now for FREE unlimited access to Reuters.com

Register

Don said if the baht weakens to 37 baht to the dollar but still moves in line with its regional peers, the Monetary Policy Committee (MPC) might ignore that as a factor in its decision as it usually monitors the competitiveness of the currency.

He said the MPC would deliberately decide how much the rate should be increased as Thailand’s economic recovery has lagged behind that of other countries.

“The odds are pretty high for a rate hike in August, but how much, the committee will have to consider,” Don said.

On Monday, BOT Governor Sethaput Suthiwartnarueput said Thailand would only gradually raise its key rate to fight inflation and ensure an uninterrupted economic recovery.

Despite off-cycle policy tightening by other central banks, the BOT said earlier on Thursday that it saw no need to call an urgent meeting to review the policy before the next meeting scheduled for August 10, when the economists expect a rate hike of a record 0.50%. Read more

Singapore and the Philippines both announced off-cycle rate hikes on Thursday to combat rising inflation. Read more

Join now for FREE unlimited access to Reuters.com

Register

Reporting by Orathai Sriring and Satawasin Staporncharnchai Editing by Kanupriya Kapoor

Our standards: The Thomson Reuters Trust Principles.

Share.

Comments are closed.