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Bank of Thailand Sees Economy Capable of Absorbing Rate Hike

  • Don Nakornthab says even half-point rise won’t derail lending
  • He also signals substantial further gains in baht are unlikely
Don Nakornthab
Don NakornthabPhotographer: Brent Lewin/Bloomberg
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Thailand’s economy is solid enough to handle an interest-rate increase and expectations of tightening this quarter are already partially reflected in the strength of the baht, according to the central bank.

A quarter-point hike, or even a climb of 50 basis points, would have “some, but not much” impact on consumer and corporate borrowing, Bank of Thailand Senior Director Don Nakornthab said in an interview in Bangkok. Don heads the economic and policy department at the monetary authority.