The central bank should consider reducing the repurchase rate because the baht’s persistent appreciation is affecting the export sector, Payungsak Chartsuthipol, chairman of the Federation of Thai Industries (FTI), said on Friday.
The FTI chief said he will called a meeting of members of five industry groups to discuss needed assistance from the government to minimise the impact of the strengthening baht next Wednesday, April 24.
On Friday, April 26, representatives of FTI will go to the Ministry of Commerce for talks on how best to maintain the country’s export markets, said Mr Payungsak.
The ministry’s export growth target of 9% for 2013 would be difficult to achieve if the baht's movement is not in line with those of neighbouring countries’ currencies, he said.
Olarn Chaiprawat, chairman of Thai Trade Representative, took the same tone.
Mr Olarn said apart from intervention in the money market, the central bank’s monetary policy committee should cut the key policy rate to prevent the baht from getting too strong.