Bank of Thailand Governor Stresses Need for Stronger Economic Growth amid Uneven Recovery

During a seminar on Tuesday, Bank of Thailand Governor Sethaput Suthiwartnarueput emphasized the uneven nature of Thailand’s economic recovery and the necessity for stronger growth prospects in the country.

Sethaput highlighted that Thailand’s potential economic growth rate of approximately 3% was deemed insufficient. The central bank’s economic forecasts stand at 2.6% growth for the current year and 3% for the following year, citing last year’s modest expansion of 1.9%, which trailed behind neighboring economies.

In ensuring economic stability, Sethaput stated that the central bank would closely monitor inflation levels and living costs to prevent them from rising excessively.

Despite calls from the government for policy easing measures, the Bank of Thailand opted to maintain its benchmark interest rate at a steady 2.50% for the fourth consecutive meeting held last month. The upcoming rate review is scheduled for August 21.

According to a Reuters poll, economists’ consensus points to one 25-basis point rate cut in the fourth quarter of 2024 and another quarter point rate cut in the second quarter of 2025 before maintaining the rates at 2% throughout the year.

Sethaput clarified last week that there was presently no immediate need to lower interest rates, reiterating the central bank’s readiness to make adjustments as needed based on evolving economic conditions.