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Thailand has no need to raise policy interest rate now, finance minister says

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Thailand has no need to raise policy interest rate now, finance minister says

 

2018-09-12T081800Z_1_LYNXNPEE8B0MM_RTROPTP_4_THAILAND-ECONOMY.JPG

FILE PHOTO: Apisak Tantivorawong, Thailand's Finance Minister gestures during an interview with Reuters at the Finance Ministry, in Bangkok, Thailand, August 3, 2018. REUTERS/Athit Perawongmetha

 

BANGKOK (Reuters) - Thailand has no need to increase its policy interest rate at the moment as inflation is still benign and global risks remain, the finance minister said on Wednesday.

 

A trade war and government borrowing costs should be taken into account in deciding the benchmark rate, Apisak Tantivorawong told reporters.

 

"I've still insisted that, with current economic factors, there is no need to raise the policy rate," he said, adding that inflation had just got back to the lower end of the central bank's range of 1 percent to 4 percent.

 

The central bank has left the key rate at 1.50 percent, near record lows, since April 2015.

 

It will next review policy on Sept. 19, when some analysts expect the first rate hike since 2011.

 

(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Clarence Fernandez)

 
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-- © Copyright Reuters 2018-09-12

Probably wise considering household debts have been highest in the last 8 years and a worrisome 80%+ of GDP. 

2 minutes ago, Eric Loh said:

Probably wise considering household debts have been highest in the last 8 years and a worrisome 80%+ of GDP. 

In the meantime those in the know and above have been shifting baht out of Thailand like a steam train in anticipation of the baht plummeting 4Q/1Q 2019

15 hours ago, Esso49 said:

In the meantime those in the know and above have been shifting baht out of Thailand like a steam train in anticipation of the baht plummeting 4Q/1Q 2019

But an increase in interest rates will increase the value of the baht.

Better wait in that case.

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