off-the-wire

RPT-Thai finmin says pace of monetary tightening still "reasonable"

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Repeats earlier story with no change in text) By Orathai Sriring and Kitiphong Thaichareon BANGKOK, Feb 13 (Reuters) - Thailand's economy could grow faster than forecast this year as a revival in tourism quickens, while the pace of monetary tightening to stave off inflationary pressures remained "reasonable", the country's finance minister said on Monday. Speaking in an interview with Reuters, Arkhom Termpittayapaisith said the Bank of Thailand had been aligning policy with the needs of the economy rather than mirroring the aggressive pace of tightening by the U.S. Federal Reserve.


"Our central bank's interest rate adjustments have been reasonable, not following the Fed but consistent with our economy," said Arkhom. "Raising rates too much will sharply drag down the economy that is getting better," he added. The Bank of Thailand has raised the key rate by a total of 100 basis points since August to 1.50%, though the tightening cycle has been less aggressive than many of its regional peers as Thailand's economic recovery has lagged other Southeast Asian nations.


It will next review policy on March 29, when most economists see a further hike. Arkhom said he expected Thai gross domestic product may beat a forecast of 3.8% growth this year on a rebound in the crucial tourism sector. (Reporting by Orathai Sriring, Kitiphong Thaichareon and Satawasin Staporncharnchai Editing by Ed Davies and Kanupriya Kapoor)

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