Bank of Thailand Chief Outlines Terms for Potential Interest Rate Cuts
The Bank of Thailand is ready to cut interest rates if economic conditions require it, says Governor Sethaput Suthiwartnarueput. He emphasized that tight liquidity could prompt a policy change, though the current 2.50% rate will remain for now. Former Prime Minister Thaksin Shinawatra suggests reducing central bank interventions to free up liquidity and encourage lending.
The Bank of Thailand (BoT) is prepared to lower interest rates if economic and financial conditions necessitate it, according to Governor Sethaput Suthiwartnarueput.
Speaking in Pattaya, he emphasized readiness to adjust monetary policy to maintain stability.
While current economic indicators align with expectations, tight liquidity or credit conditions could trigger a rate adjustment.
The BoT left its key interest rate unchanged at 2.50% and faces pressure from the Pheu Thai government for rate cuts to stimulate the economy.
However, Suthiwartnarueput argues that structural reforms are more crucial than lowering rates.
Former Prime Minister Thaksin Shinawatra urged freeing up liquidity by reducing central bank bond sales and halving fees collected from banks to the Financial Institutions Development Fund (FIDF).
The central bank is open to collaborating with the Ministry of Finance but maintains its independence is critical.
Speaking in Pattaya, he emphasized readiness to adjust monetary policy to maintain stability.
While current economic indicators align with expectations, tight liquidity or credit conditions could trigger a rate adjustment.
The BoT left its key interest rate unchanged at 2.50% and faces pressure from the Pheu Thai government for rate cuts to stimulate the economy.
However, Suthiwartnarueput argues that structural reforms are more crucial than lowering rates.
Former Prime Minister Thaksin Shinawatra urged freeing up liquidity by reducing central bank bond sales and halving fees collected from banks to the Financial Institutions Development Fund (FIDF).
The central bank is open to collaborating with the Ministry of Finance but maintains its independence is critical.
