BOT says interest rates not forex tool
The Bank of Thailand will not use interest rates to "oversee" fluctuations in the baht's value.
"If we reduce the policy-signal rate, it would be a sign the economy is improving. Then capital would flow in," Tarisa Watanagase, central bank governor, said on Monday. Such a policy would be implemented only when there was a need to control inflation and support economic growth, she said. Her comments were in reaction to speculation by some market watchers that the central bank might have to reduce the policy-signal rate - the 14-day repurchase rate - in order to deal with the baht's current rapid appreciation. The central bank's Monetary Policy Committee will meet to consider the policy-signal rate next Wednesday. The US Federal Reserve will consider its policy rate next Tuesday.
Anoma Srisukkasem The Nation
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