Bank says current key rate at neutral level still appropriate
Says inflation seen low or negative into early next year
Says minimum wage hikes won39;t affect inflation forecasts

BANGKOK, Dec 13 Reuters Thailand39;s current policy rate at a neutral level remains appropriate for the economy, while inflation is expected to gradually increase to within a target range, central bank officials said on Wednesday.

The policy rate, standing at a decade high of 2.50, can see off both upside and downside risks to the economy, the officials said, as the government plans a digital wallet policy to give Thais 500 billion baht 14 billion to boost spending.

The current rate at 2.5 is robust for the overall economic picture, with or without the digital wallet, Piti Disyatat, the assistant governor of the Bank of Thailand, told a monetary policy forum.

Southeast Asia39;s secondlargest economy is recovering, albeit slowly, reducing the need for a monetary policy boost, he said, while adding that there was room for fiscal policy to support longterm growth.

The bank39;s director, Phurichai Rungcharoenkitkul, said the current policy rate was not impeding the economic recovery and allowed the BOT to move both ways if needed.

Last month, the BOT left its key rate unchanged at 2.50 after hiking it by 200 basis points since August last year to curb inflation.

It will next review policy on Feb. 7, when most economists expect no policy change.

Last month, the BOT cut its forecast for…