The Thai PM says that the central bank has agreed to keep the policy rate the same

Image: Reuters Berita 24 English -  Prime Minister Prayuth Chan-ocha told reporters on Tuesday that Thailand's central bank has told the...

Image: Reuters

Berita 24 English -  Prime Minister Prayuth Chan-ocha told reporters on Tuesday that Thailand's central bank has told the finance ministry that it will keep the policy rate where it is now to help the economy.

Prayuth also said that the Finance Ministry, the Central Bank, commercial banks, and the private sector in Thailand needed to do more to keep inflation in check.

He said, "We need to find a way to deal with inflation, but it also depends on what's going on in the world."

In May, Thailand's headline inflation rose much faster than expected and hit its highest level in nearly 14 years. This was due to rising energy prices and the end of some government support measures.

The monetary policy committee (MPC) of the Bank of Thailand will look at policy rates on Wednesday. Its board chairman, Porametee Vimolsiri, has said that rates will go up, but that the MPC will decide when.

A Reuters poll showed that most people think the MPC will keep its key rate at a record low of 0.50 percent on Wednesday and maybe for the rest of the year to help the recovery.

On Monday, Finance Minister Arkhom Termpittayapaisith said that fiscal and monetary policies must continue to work together for a full economic recovery and that the central bank shouldn't think about raising its key rate until the economy has recovered strongly.