Thai finance minister meets central bank, urges close watch on weak baht

THAILAND’S finance minister said on Thursday (Sep 22) he had met with central bank officials and asked them to monitor the baht currency closely after it hit its weakest level in nearly 16 years.

Finance Minister Arkhom Termpittayapaisith said any interest rate hikes must weigh inflation, growth and capital movements.

The central bank is expected to raise its key interest rate again on Sep 28 after hiking it in August for the first time in nearly 4 years by a quarter point to 0.75 per cent, to curb inflation.

The baht has lost about 10.6 per cent this year against a surging US dollar. Its weakness is however benefiting exports, he said, adding the government would continue to help with energy prices and living costs.

Arkhom told reporters the central bank had reported some capital outflow but those were not substantial.

The economy is still expected to grow 3 per cent to 3.5 per cent in 2022, helped by a rebound in the important tourism sector, which should see 8 million foreign visitors this year, Arkhom said. REUTERS