Thai central bank says rate cut won't curb capital inflows

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Thai central bank says rate cut won't curb capital inflows
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Thailand's central bank is ready to act if the baht's moves are not in...

BANGKOK - Thailand’s central bank is ready to act if the baht’s moves are not in line with economic fundamentals, the governor said on Wednesday, adding that monetary policy easing will not help prevent capital inflows as interest rates are already low.

Thailand’s policy rate is among the lowest, with real interest rates also low among emerging countries, he said. The central bank will next review monetary policy on Aug. 7. Some analysts expect a rate cut later this year as growth falters, with ING seeing one as soon as next month. “But today we have the government, which will introduce economic measures. That will help ease the problems,” he said.

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