Economics
Thailand Shies Away From Rate Cut in Tussle With Mighty Baht
- BOT plans to ease rules on money outflows, may cut bond supply
- Reducing the key rate may have only limited impact, bank says
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The Bank of Thailand reiterated its concern about the baht’s persistent strength on Wednesday, but said cutting the key interest rate may have only a limited impact in dealing with the currency’s ascent and instead flagged a preference for using a range of tools.
The bank plans to ease rules on money outflows by giving more flexibility for portfolio investment by Thai investors, Deputy Governor Mathee Supapongse said at a briefing in Bangkok. Reducing the bond supply is also among the tools officials are ready to use, according to Governor Veerathai Santiprabhob.