Thailand's central bank will let the baht move in line with market forces but will manage any excessive volatility in the currency, while the key interest rate will have to be hiked to tackle higher inflation, officials have announced.
The Finance Ministry expects the baht's value to rebound in the second half this year, in line with the anticipated narrowing of the current account deficit, says a ministry source who requested anonymity.
The Bank of Thailand said on Friday it would let the baht move in line with market forces, but would take action if there was excessive volatility in the currency.
Thailand's central bank will let the baht move in line with market forces but will manage any excessive volatility in the currency, while the key interest rate will have to be hiked to tackle higher inflation, officials said on Friday.
The Bank of Thailand (BoT) will hold a media briefing on the policy interest rate and the baht on Friday at 10.30am, as the local currency trades at its weakest level in more than six years against the United States dollar.