Thailand has no need to follow Fed’s tightening -central bank chief

BANGKOK : Thailand has no need to raise interest rates following the Federal Reserve’s hikes in U.S. rates as domestic factors and the economic recovery will be the main issues determining policy, the central bank chief said on Thursday.

The country’s external position remains strong with low foreign debt and high international reserves, Bank of Thailand Governor Sethaput Suthiwartnarueput told reporters on the sideline of a business seminar.

Capital movements had not been a problem yet, he said.

However, the BOT will closely monitor baht volatility which has been driven by external factors, including the Fed’s rate trend, as it may impact smaller businesses, Sethaput said.

He declined to say whether the BOT had intervened over the baht that has been trading at its weakest level in almost five years against the dollar.

The BOT has left its benchmark rate at a record low of 0.50 per…