On Nov. 18, the Bank of Thailand's (BOT) monetary policy committee voted unanimously to leave the one-day repurchase rate at a record low of 0.50% for a fourth straight meeting after three cuts earlier this year to support a coronavirus-hit economy.
The committee was worried about the rapid rise in the baht, and would consider necessary measures "to ensure that the exchange rate movements would not be an obstacle to economic recovery", the minutes said.
"The rapid appreciation of the baht would affect the fragile economic recovery through eroding profitability of exporters that would in turn affect investment and employment," the minutes said.
The baht traded at 30.22 per U.S. dollar at 0345 GMT, after hitting a more than 10-month high of 30.13 last month.
The BOT plans to hold a briefing on additional measures to contain the baht after announcing a series of steps last month.
Risks to the economy remained and could arise from factors including political uncertainties, while the gradual and uneven recovery could impact financial stability, the minutes said
Thailand has seen some of its biggest protests in years in recent months calling for Prime Minister Prayuth Chan-ocha to stand down and seeking reform of the monarchy.
Southeast Asia's second-largest economy shrank a less than expected 6.4% in the third quarter from a year earlier after the second quarter's 12.1% slump.
The BOT forecast the economy would shrink a record 7.8% this year and will review this at its next policy meeting on Dec. 23.
For the full minutes https://www.bot.or.th/English/MonetaryPolicy/MonetPolicyComittee/ReportMPC/Minutes/MPC_Minutes_72020_f7ds75qx.pdf
(Reporting by Orathai Sriring; Editing by Ed Davies)
By Orathai Sriring
