"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)
