Thailand shouldn't hike interest rates this year - finance minister

 

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 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 <THCBIR=ECI> 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 central bank said it was worried that the baht would strengthen because of fund inflows and also trimmed its inflation forecast for 2019. But why would they want to raise rates now?" the minister said.

 

The baht <THB=TH> 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.

 

(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Richard Borsuk)

 

-- © Copyright Reuters 2018-09-20

 

No reason to raise interest rates unless you are a Hiso and want to move some money offshore. 

6 hours ago, webfact said:

It is Asia's best performing currency this year.

Call me sceptical, but with a miltary Junta and no free elections something smells fishy to me.

12 minutes ago, RichardColeman said:

Call me sceptical, but with a miltary Junta and no free elections something smells fishy to me.

I'd be more suspicious towards a universal system that requires faux monetary comparatives.

Just now, zzaa09 said:

I'd be more suspicious towards a universal system that requires faux monetary comparatives.

Just keep printing money and all will be OK.

1 hour ago, overherebc said:

Just keep printing money and all will be OK.

the strength of the Thai Baht shows clearly that everything is OK. and that goes for the M1 money supply too.

1 hour ago, RichardColeman said:

8 hours ago, webfact said:

It is Asia's best performing currency this year.

Call me sceptical, but with a miltary Junta and no free elections something smells fishy to me.

a hot shower might help to get rid of a fishy smell.

4 hours ago, Ulic said:

No reason to raise interest rates unless you are a Hiso and want to move some money offshore. 

It has already started I should think in anticipation

30 minutes ago, Naam said:

the strength of the Thai Baht shows clearly that everything is OK. and that goes for the M1 money supply too.

Available cash based ?

Keep printing! 

13 hours ago, overherebc said:

Available cash based ?

what part of

Quote

M1 money supply

is it you don't understand?

4 minutes ago, Naam said:

what part of

is it you don't understand?

Just asking.

M1 money is the value of notes coins and other available easily convertible sources, immediately available sources etc?

2 hours ago, overherebc said:

Just asking.

M1 money is the value of notes coins and other available easily convertible sources, immediately available sources etc?

M1 money is the total value of notes, coins in circulation as well as demand deposits without maturity held with financial institutions. for an ad hoc evaluation the relation of M1 expansion with the expansion of GDP is used.