Thai central bank chief says ready to adjust rate tightening

Thailand's central bank is ready to adjust the pace of tightening monetary policy if needed and will be prepared to hold an off-cycle meeting if necessary, the central bank chief said on Thursday.

On Wednesday, the central bank raised its key interest rate by a quarter point to 1.00 per cent at its regular meeting to curb inflation.

The country's Core Inflation is expected to peak in the fourth quarter, while Thailand's economic recovery remains intact, Bank of Thailand Governor Sethaput Suthiwartnarueput told reporters on Thursday.

Sethaput said that a weak Thai currency was being driven by a strong dollar and was not unusually weak but would be ready to act on excessive moves.

The baht has been trading at 16 year lows against the dollar. It has fallen 12.4 per cent against the dollar so far this year. In August, headline inflation was 7.86 per cent, a 14 year high, and far above the central bank's target range of 1 per cent to 3 per cent. The average headline inflation will be 6.3 per cent this year and 2.6 per cent next year, according to the BOT on Wednesday. The BOT maintained its 2022 economic growth outlook of 3.3 per cent seen in June, and trimmed its 2023 growth forecast to 3.8 per cent from 4.2 per cent for 2023. The economy grew by 2.5 per cent from a year earlier in the April-June period. The second-largest economy in Southeast Asia increased by 1.5 per cent last year, among the slowest pace in the region.