Thai policy committee has not closed door to a rate hike - central bank official

[webfact]

Thai policy committee has not closed door to a rate hike - central bank official

 

FILE PHOTO: Thailand's central bank is seen at the Bank of Thailand in Bangkok,Thailand in this April 26, 2016 file photo. REUTERS/Jorge Silva/File Photo

 

BANGKOK (Reuters) - Thailand's monetary policy committee (MPC) did not "close the door" on raising interest rates this year, as the economy is still growing, driven by consumption and investment, a senior central bank official said on Thursday.

 

Southeast Asia's second-largest economy can grow as forecast this year if there is no political turmoil, Don Nakornthab, senior director of the Bank of Thailand, told reporters.

 

"The MPC's stance is still wait and see and data-dependent, with a slightly hawkish bias," he said.

 

Last week, the MPC voted unanimously to leave the benchmark interest rate unchanged at 1.75 percent for a second straight review after raising it in December for the first time since 2011.

 

It also cut the 2019 GDP growth forecast to 3.8 percent from 4.0 percent, which some analysts said would reduce the chance of a rate hike this year.

 

Thailand held an election on Sunday but the outcome may take weeks to become clear, with both a pro-army party and the opposition claiming to have enough numbers to form a government.

 

(Reporting by Kitiphong Thaichareon; Writing by Orathai Sriring; Editing by Kim Coghill)

 

-- © Copyright Reuters 2019-03-28

[Srikcir]

4 hours ago, webfact said:

"The MPC's stance is still wait and see and data-dependent, with a slightly hawkish bias,"

TRANSLATION:

Need to see if Prayut gets elected PM.

If not raise rates, blame new government.