Thai to ensure uninterrupted economic recovery

  • gov says recovery will continue and banks will be strong
  • Inflation hit its highest level in 14 years in June
  • Economists expect rate hike next month

BANGKOK, July 20 (Reuters) – Thailand’s economy has clearly recovered and the central bank will ensure that the recovery is not interrupted by efforts to tackle rising inflation, the head of the country said on Wednesday. the central bank, in a context of anticipation of an increase in interest rates.

The economic recovery is expected to continue as the financial system remains sound and functioning normally, Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput said at a business event.

The economic context has largely changed compared to the COVID-19 crisis, so all sectors must adapt to rising inflation, ongoing political adjustments in major economies and geopolitical issues, said he declared.

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Monetary policies and measures need to be adjusted to match economic and financial conditions and a new balance of risks that gives inflation more weight by “focusing on continued economic recovery without interruption,” Sethaput said.

The central bank is expected to raise its benchmark interest rate (THCBIR=ECI) by a record high of 0.50% in its next policy review on August 10. Such an increase would be the first since the end of 2018. read more

Thailand’s headline inflation hit a nearly 14-year high of 7.66% in June, well above the BOT’s 1% to 3% target range, and BOT officials said that consumer prices had not yet peaked. Read more

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Reporting by Orathai Sriring and Kitiphong Thaichareon Editing by Kanupriya Kapoor

Our standards: The Thomson Reuters Trust Principles.

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