Thailand has no need to follow Feds tightening -central bank chief

　　div classBodysc17zpet90 cdBBJodivpBy Kitiphong Thaichareon and Orathai Sriringp

　　pBANGKOK Reuters – Thailand has no need to raise interest rates following the Federal Reserves hikes in U.S. rates as domestic factors and the economic recovery will be the main issues determining policy, the central bank chief said on Thursday.pdivdivdiv classBodysc17zpet90 cdBBJodiv

　　pThe countrys external position remains strong with low foreign debt and high international reserves, Bank of Thailand Governor Sethaput Suthiwartnarueput told reporters on the sideline of a business seminar.p

　　pCapital movements had not been a problem yet, he said.p

　　pHowever, the BOT will closely monitor baht volatility which has been driven by external factors, including the Feds rate trend, as it may impact smaller businesses, Sethaput said.p

　　pHe declined to say whether the BOT had intervened over the baht that has been trading at its weakest level in almost five years against the dollar.p

　　pThe BOT has left its benchmark rate at a record low of 0.50 since May 2020. It will next review policy on June 8 and most analysts expect no imminent change.p

　　pAt the seminar, Finance Minister Arkhom Termpittayapaisith said fiscal and monetary policies were still working in step to support the economy.p

　　pSethaput said the BOT would ensure no disruptions to the economic recovery, which has been slow and uneven, with the vital tourism sector still lagging.p

　　pThe task ahead for the BOT “is to do whatever it takes to make the recovery uninterrupted and take off as smoothly as possible,” he said.p

　　pDespite higher prices, there was no risk of stagflation since the economy is still growing, likely by more than 2 this year, helped by exports and tourism, Sethaput said.p

　　pHe sees the number of foreign tourists topping a previous forecast of 56 million this year, versus nearly 40 million in 2019.p

　　pLast month, Sethaput told Reuters tourism might not return to prepandemic levels until 2026 and the BOT would focus on supporting growth, even as surging global prices force its peers to increase interest rates. p

　　pThe BOT is also due to review its 2022 growth forecast, currently at 3.2, at the rate meeting. Sethaput said the state planning agencys growth outlook of 2.53.5 this year was close to the BOTs estimate.p

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　　pp Reporting by Orathai Sriring, Kitiphong Thaichareon, Satawasin Staporncharnchai and Panarat Thepgumpanat Editing by Ed Daviesp

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