Illustrative photo (Photo: Reuters) Bangkok (VNA) – Thailand's current policy rate is appropriate for the economy, but the country is ready to make "adjustments" if needed in the context of increasing risks across the world and concerns over the Middle East conflict, said Governor of the Bank of Thailand (BoT) Sethaput Suthiwartnarueput.
The governor said that Southeast Asia's second largest economy is still expected to grow close to the forecast of 2.8% this year although third-quarter growth might be softer than expected.
The central bank's growth forecast of 4.4% for 2024 will be revised if there is any change in the government's stimulus plan, he added. Last year, the Thai economy grew 2.6%.
Sethapiut said that the BoT is concerned about the fallout from the conflict in the Middle East, according to Reuters.
Last month, the BoT's monetary policy committee unexpectedly raised the key interest rate by a quarter point to 2.50%, the highest in a decade, saying growth and inflation are likely to pick up next year.
The rate has been raised by a total of 200 basis points since August last year to rein in elevated inflation.
The governor said that the baht currency has been more volatile than its peers due to external factors and capital outflows from the country.
The baht has fallen about 4.4% against the US dollar so far this year, with capital outflows at 308 billion baht (8.53 billion USD) since the beginning of this year./.
