Bank of Thailand opposes baht policy

Bank of Thailand (BOT) governor Prasarn Rairatvorukul said on Thursday that he disagrees with the policy to weaken the value of the baht signaled by Finance Minister Kittirat Na-Ranong. BOT governor made the remarks in reference to Kittirat's comment on Wednesday that the Finance Ministry wanted a weaker baht and that the Central Bank should lower its current 3 percent key policy rate in order to stimulate the economy. Prasarn said he disagreed with devaluing the baht because it was BoT policy to use a managed float to control the exchange rate, a method that allows the baht value to be flexible in line with the money market mechanism. The governor also affirmed that the Central Bank's key policy rate of 3 percent is a suitable level for supporting economic recovery.