BANGKOK, Sept 20 (Reuters) – Thailand should not raise interest rates this year as the baht is strong, inflation remains low and a trade war is a concern, the finance minister said on Thursday.
Apisak Tantivorawong’s comment came after the central bank’s monetary policy committee on Wednesday voted 5-2 to leave the policy rate unchanged at 1.50 percent. Analysts viewed a growing split vote as a hint of a hike soon.
The central bank should consider a good timing for policy tightening and make sure it will not cause problems for the economy, Apisak told reporters.
The baht was trading at 32.38 per U.S. dollar on Thursday mid-morning, strengthening from 32.43 on Wednesday and hovering at more than three-month high against the greenback. It is Asia’s best performing currency this year.
