Thailand is in no rush to tighten its monetary policy despite rising global interest rates, thanks to ample domestic liquidity and benign inflation, the central bank governor said on Thursday.
The central bank will focus on domestic factors in deciding monetary policy, Bank of Thailand Governor Veerathai Santiprabhob told reporters.
"For Thailand, there is no need to raise interest rates quickly, despite higher global interest rates," he said.
"We have to mainly respond to economic issues in the country. Liquidity in Thailand remains high while inflation is still below the target," he said.
Annual headline inflation was 0.68% in January, below the central bank's 1-4% target range.
Last week, the Bank of Thailand (BoT) left its policy interest rate steady at 1.50%, noting it did not give "special weight" to rises in US interest rates.
Thailand's policy rate has not changed since April 2015 and is just a quarter-point above the record low.
The BoT will next review monetary policy on March 28. Most analysts expect no change for the rest of 2018, while some predict a rise in interest rates in the second half of the year.
The BoT last raised its policy rate in August 2011, a quarter-point increase to 3.50%.
Mr Veerathai said Thailand's economic growth was more broadly-based and driven by exports, while surging January imports also suggested growing domestic activity, although high household debt was a concern.
The BoT has forecast 3.9% growth for 2018 and will update its outlook next month. The economy grew 3.9% last year, the fastest pace in five years.
Mr Veerathai reiterated that the baht's strength had been driven by a weaker dollar, while higher US bond yields had little impact on Thai yields.
Thailand's economy, Southeast Asia's second-largest, can tolerate volatility in capital flows, Mr Veerathai noted.
"The Thai economy is strong and can withstand global volatility to some extent," he told a business seminar.
"We have low foreign debt, very good foreign currency liquidity, high foreign reserves and a strong banking system."