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Thai PM says central bank has agreed to keep policy rate steady

BANGKOK (CNA) – Thailand’s central bank has told the Finance Ministry that it will keep its policy rate at the current level to support the economy, Prime Minister Prayut Chan-o-cha told reporters yesterday.

General Prayut also said the Finance Ministry, central bank, commercial banks and the private sector in Thailand needed to do more to keep inflation in check.

“We have to find a way to solve the (inflation) issue… but it also depends on the external situation,” he said. Thailand’s headline inflation rose at a much faster pace than expected in May, hitting its highest level in nearly 14 years on soaring energy prices and the end of some government support measures.

The Bank of Thailand’s monetary policy committee (MPC) will review policy rates today. Its board chairman, Porametee Vimolsiri, has said rates are set to rise, but timing would depend on the MPC’s view of the economy.