Thai says no need to tighten if inflation rises on supply-side shocks

BANGKOK, Jan 7 (Reuters) - Thailand’s central bank says there is no need to raise its benchmark interest rate if inflation rises on supply-side shocks, but that the economy is still fragile, the governor said on Tuesday.

The Bank of Thailand (BOT) remains worried about high household debt levels and is ready to review loan to value rules if they are seen as too harsh, Governor Veerathai Santiprabhob told a briefing.

The BOT reiterates that the monetary policy committee is concerned about the strength of the baht and suggests close monitoring and relaxation of rules to spur fund outflows, according to Assistant Governor Titanun Mallikamas.

The MPC stands ready to use policy tools as appropriate, Titanun said.

Reporting by Kitiphong Thaichareon and Orathai Sriring; Editing by Tom Hogue