PATTAYA, Thailand – The Bank of Thailand (BoT) has confirmed that the Monetary Policy Committee (MPC) sees no need to call an emergency meeting, unlike recent action taken by Indonesia’s central bank, citing Thailand’s stronger external stability and manageable currency movements. Ms. Chayawadee Chai-anant, Assistant Governor for Corporate Relations and BoT spokesperson, said Thailand’s financial position remains stable despite global market volatility, particularly following geopolitical tensions between the United States and Iran. “Given Thailand’s exchange rate situation and strong external stability, there is no need for an extraordinary MPC meeting as in the case of Indonesia,” she said.
Her remarks come after Indonesia’s central bank raised interest rates in an emergency move aimed at stabilizing the rupiah, which has faced sharp depreciation amid sustained capital outflows. Ms. Chayawadee noted that while the Thai baht has weakened by around 5.4% since the start of the recent geopolitical tensions, its movement remains orderly. Foreign capital flows have also shown limited net outflows of around 1.3 billion USD, with recent signs of renewed inflows into long-term bonds and equities.
In contrast, Indonesia’s rupiah has fallen more than 8%, marking record weakness, driven by continued foreign selling of equities and bonds totaling approximately 3.9 billion USD. Market concerns have also been fueled by fiscal policy uncertainty and fears of Indonesia’s equity market being downgraded from emerging to frontier market status. The BoT reiterated that Thailand’s financial system remains resilient, supported by stable external fundamentals and relatively balanced capital flows, reducing the need for urgent monetary policy intervention.
