BANGKOK: Thailand's central bank should consider a time frame this year for monetary policy tightening, with the economy likely to grow by at least 4 percent, a deputy governor of the Bank of Thailand said.
The central bank has left its policy interest rate unchanged at 1.50 percent, near record lows, since April 2015 as Southeast Asia's second-largest economy has struggled to gain traction.
Most economists expect no policy change for the rest of 2018, while some predict rate hikes in the second half of the year. The BOT last raised its policy rate in August 2011, a quarter-point increase to 3.50 percent.
While the economy continues to face risks, "the overall picture is satisfactory and GDP this year is likely to grow no less than 4 percent," Paiboon Kittisrikangwan said in an interview posted on Facebook by the BOT on Tuesday.
The central bank has forecast the economy will grow 3.9 percent this year, the same as in 2017, which was the fastest pace in five years. But growth is still heavily reliant on exports, while domestic consumption continues to lag.
The BOT will review its growth projection at its next policy meeting on March 28.
Paiboon, who is on the BOT's seven-member monetary policy committee, said "this year, it's time to consider conditions and an appropriate time frame for adjusting monetary policy to more normal levels" and to send signals to every sector on how to adjust to policy changes, which must occur sooner or later.
Paiboon said the policy committee will also look at how to maintain economic momentum and make private investment and consumption stronger, while keeping capital flows more balanced and the baht in line with the economy and fundamentals.
A joint committee of industry, commerce and banking said on Tuesday it was worried a delay in government budget disbursements might see the economy grow less than its forecast of 3.8-4.5 percent this year.
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