According to Reuters on Monday, Thailand’s central bank, the Bank of Thailand (BOT), remains cautious about cutting interest rates despite government pressure, as reported by Deputy Governor Alisara Mahasandana.
Mahasandana informed Reuters that the bank is committed to balancing short-term economic needs with long-term growth prospects.
During the International Monetary Fund and World Bank Spring Meetings, Mahasandana acknowledged the Thai government’s advocacy for rate cuts.
Prime Minister Srettha Thavisin has advocated for lower rates to address household debt and navigate China’s economic slowdown, a significant trading partner for Thailand.
However, Mahasandana stressed that the BOT’s monetary policy committee (MPC) takes a comprehensive approach, considering both short-term and long-term impacts on the economy.
As of April 10th, the BOT has maintained its key interest rate at 2.5 percent, the highest level in over a decade. The next review is slated for June 12th.
The central bank projects Thailand’s economy to grow by 2.6 percent in 2024 and 3.0 percent in 2025, building on the modest 1.9 percent growth seen in 2023.
