Thai monetary policy will consider economic outlook, inflation: central bank
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THAILAND’S central bank said on Thursday (Nov 3) its policy will take into account the country’s economic growth, inflation rate, and financial stability.
“Capital flows remain normal despite a weakening in the baht currency,” said assistant governor Chayawadee Chai-Anant in a statement, adding that monetary policy would be flexible and appropriate for the local context.
The Bank of Thailand’s (BOT) comments come after the US Federal Reserve (Fed) raised interest rates by 75 basis points on Wednesday.
There was short-term volatility in Thai capital markets after the Fed’s rate hike, Chayawadee said, adding that the BOT was closely monitoring the baht’s movements and that its weakening was moderate in comparison with regional peers.
“The private sector should manage risk to reduce impact from market volatility,” she said.
Monetary policy would accommodate economic recovery, Finance Minister Arkhom Termpittayapaisith told reporters separately.
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“The central bank will manage the impact of the Fed rate hikes because we are still in recovery,” he said. REUTERS
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