Thailand to keep capital control

Thailand will need to keep capital controls in place while flows remain volatile, Finance Minister Chalongphob Sussangkarn is quoted by Dow Jones Newswire on Monday.

The Bank of Thailand imposed controls in capital inflows in December of last year to stem an excessive rise in the baht currency.

"As long as capital flows remain volatile, we do need to keep capital controls," Chalongphob was quoted by Dow Jones Newswire on the sideline of an Asian Development Bank forum on the 10th anniversary of the Asian financial crisis.

Meanwhile, Chalongphob said Thailand's economy is likely to pick up in the second half of this year, and inflation isn't a concern, according to Dow Jones Newswire.

Thailand's gross domestic product is projected at 4.0 per cent - 4.5 per cent, while the consumer price index is expected to rise 2.0 per cent - 2.5 per cent, according to Thailand's National Economic and Social Development Board, a state economic planning agency.

Chalongphob said that as growth is likely to recover, local interest rates should be near a bottom.

He said earlier Monday that he expects growth to recover to 6 per cent - 7 per cent.