Thai central bank shuns talk of special rate hike meeting

THAILAND'S central bank said on Friday (Jun 17) its scheduled 6 annual interest rate meetings were sufficient for considering monetary policy, in a response to market speculation that it would call a special meeting about a rate hike.

The Bank of Thailand (BOT) said last week's policy review had clearly communicated its future policy implementation, while there was no new information that would change its outlook for the economy and financial conditions.

The comment came in a text message response to a question from media about whether there would be a special meeting about raising the key rate.

Some economists have predicted the BOT would hold such a meeting to raise the key rate before the next scheduled review on Aug 10, driven by the Federal Reserve's more aggressive policy tightening and a weakening baht at more than five-year lows against the dollar.

The BOT in its text message on Friday said special meetings can occur only in exceptional circumstances, with unexpected economic and financial developments that could significantly affect monetary policy targets, like for the economy and financial and price stability, it said.

The last such meeting took place in March 2020, when the rate was cut as Covid-19 started to spread globally.

Last week, the BOT's committee voted 4-3 to hold the key rate at a record low of 0.50 per cent. Three dissenters favoured a quarter-point hike.

On Monday, its Governor Sethaput Suthiwartnarueput said too-late rate hikes would not be good for the economy as inflation rises. REUTERS