MPC expects export growth to exceed 4%

BANGKOK, March 1 (TNA) - The Monetary Policy Committee will discuss the impacts of interest rate hikes by the United States’ Federal Reserve and predicts the value of Thai exports will grow by more than 4% this year. Don Nakornthab, senior director of Bank of Thailand’s Economic and Policy Department, said the Monetary Policy Committee (MPC) would meet this month to discuss possible impacts of the rising US policy rate. He said that the Bank of Thailand (BOT) still expected the Federal Reserve to raise its policy rate three times this year. The rate hikes should reduce capital inflows and weaken baht. However, Thailand’s current account surplus continued to support baht appreciation, he said. At the end of January, the baht value stood at 31.30 baht against a US dollar. The fluctuation rate of baht stood at 4% in January and rose to 6% in February, being at the average level in the region. Mr Don also said that the MPC would revise its projection on export growth from 4% to well more than 4% this year as the export expansion in January was at 16.7%, the fastest rate in 62 months. (TNA)