Thai Central Bank Strongly Believes Economy Is Intact, Not Calling for Special Rate Meeting

On Monday, the Bank of Thailand explained in response to the call from the government regarding its tight monetary policy stance, saying that the country’s economy could not be fixed by only adjusting interest rates against the ongoing external factors.

Mr. Piti Disyatat, the Bank of Thailand Assistant Governor, stated that the recovery of Thailand’s economy remained unsteady and cannot be easily fixed by adjusting interest rates, which are already low compared to the global’s, while added that the central bank is ready to adjust its monetary policy stance if there is development in the economy.

Thailand’s economic growth in 2024 is expected to have more stability, as inflation is expected to be within the central bank’s target range of 2-3%.

The comment came after Prime Minister Srettha Thavisin showed his determination for the bank’s officials to cut interest rates, as he aimed to revive the slow economy with stimulus measures, while stating that people and businesses were affected by the currently high rates.

The Bank of Thailand left its key policy rate unchanged at a decade-high of 2.50% in November after raising it by 200 basis points since August 2022 to fight high inflation.

The central bank noted that the Thai economy is still in line with forecast and there is no need to call for a special rate meeting.