Thai inflation to peak in Q3 and rate hikes is necessary , says its central bank chief

BANGKOK, Sept 5 (Reuters): Thailand's central bank will have to raise interest rates to prevent the inflation engine from starting but the pace will be gradual to safeguard a still fragile economic recovery, its chief said on Monday.

The inflation, however, is set to peak in the third quarter and is likely to be more than 6% this year before falling within the central bank's target range of 1% to 3% next year, Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput told a seminar.