The Bank of Thailand (BoT) was instructed to discuss with the Monetary Policy Committee (MPC) measures to slow down foreign capital inflow and tame the surging Thai baht, according to the deputy prime minister and finance minister.
Kittirat Na-Ranong said the BoT governor and secretary general of the National Economic and Social Development Board (NESDB) agreed that the movement of Thai currency at Bt29 to the dollar was unrealistic and could jeopardize Thailand’s exports and economy.
The BoT and NESDB chiefs held a meeting with the deputy prime minister on Friday.
The baht will continue appreciating if no action is taken on the 2.75% policy interest rate and foreign capital inflow, Kittirat said.
He said the BoT governor was told to discuss with MPC members on the advantages, disadvantages and risks of reducing the policy interest rate.
He quoted the BoT as saying that some measures have been prepared but not executed in the wake of improving market sentiment.
The Thai baht weakened Friday, April 26, to close at Bt29.36/38 to the dollar after a few rounds of adjustment during the day.
Prime Minister Yingluck Shinawatra was scheduled to hold a meeting with the finance minister and BoT governor regarding the monetary situation and possible measures this past week.
