BANGKOK (NNT) – The Bank of Thailand (BOT) says it is highly likely to raise its key policy rate at its August meeting, as other central banks move to tighten their monetary policy.
According to BOT Senior Director Don Nakornthab, weakness in the baht is still in line with those of trade partners and competitors, with the central bank ready to intervene if the Thai currency weakens too much.
The senior director said that if the baht weakens to 37 to the dollar but still moves in line with regional peers, the monetary policy committee (MPC) might overlook that as a factor in their decision because they usually watch currency competitiveness.
He added that the MPC would be deliberate in deciding how much the rate should be hiked, as Thailand’s economic recovery has lagged that of other countries.
Don said, “Chances are quite high for a rate hike in August, but by how much,…
