According to a press conference made by the Bank of Thailand’s Governor Sethaput Suthiwartnarueput, the central bank is running low on “ammunition” following a series of recent interest rate reductions.
The governor emphasized the need for targeted interventions to protect the nation’s economy—a ranking second in Southeast Asia—from the repercussions of US-imposed tariffs.
Governor Sethaput, during a briefing this Friday, shared that the Bank of Thailand (BOT) is assessing additional measures that would become necessary based on how significantly US tariffs affect Thai exports. These initiatives will not be broad but instead will concentrate on sectors requiring specific assistance, he stated.
In a significant monetary policy move last week, the BOT executed its initial consecutive rate cuts from 2020, accumulating to a total reduction of 75 basis points since October. The bank also indicated its readiness to further ease monetary policy if needed. During this period, the Monetary Policy Committee revised downward Thailand’s growth forecasts, citing risks from the potential 36% tariffs threatened by the United States and persistent uncertainties in global trade.
Governor Sethaput highlighted the constraints on monetary policy options, stating, “As far as the monetary policy is concerned, we have very limited ammunition,” underscoring the need for future prudence.
He described the present benchmark interest rate of 1.75% as accommodative and reiterated that the central bank is prepared to implement further easing if growth faces greater threats.
