BoT: No rate cut needed | Bangkok Post: business

Thai interest rates will not fall as an economic recovery that is exceeding the central bank’s expectations prompts it to raise its 2012 growth forecast, says Bank of Thailand governor Prasarn Trairatvorakul.

The economy will probably expand by 6% this year, from a previous estimate of 5.7%, Dr Prasarn said in an interview on Friday with Bloomberg News in Manila, where he is attending the Asian Development Bank meetings.Inflation is still at a "manageable level", he said."The recovery is clear and is quite broad-based so it’s not necessary to cut the rate further," he said. "We don’t think it is proper under these circumstances."The Bank of Thailand has kept its benchmark rate unchanged at its past two meetings, resisting pressure from the government to resume cuts to help businesses recover from last year’s floods.While inflation slowed in April to the lowest in more than two years, rising wage and oil costs are reviving price pressures.The baht had its biggest weekly loss this year on speculation that importers are stepping up purchases of the US dollar to take advantage of a more favourable exchange rate.The currency touched a five-week high of 30.68 per dollar on Wednesday  before losing 0.5% that day.Imports climbed 25.6% in March, the most since September, as...