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Thai PM and central bank clash over interest rates amid low inflation
Picture courtesy of Nutthawat Wichieanbut The clash between Prime Minister Srettha Thavisin, who also holds the finance minister portfolio, and the Bank of Thailand intensified. The prime minister has been vocal about his belief that the central bank should lower its interest rates as inflation rates have decreased.
On a social media platform, PM Srettha blamed the Bank of Thailand for causing harm to the economy by maintaining high interest rates despite subsiding inflation. This post followed his parliamentary speech on January 3, where Srettha suggested that the risks to the country’s economy should be taken into account when deciding on monetary policies.
“Monetary policy should align with economic trends, tighter financial conditions, and the boost from government policies.”. He reiterated his stance on Monday, stating, “As inflation is very low, an interest rate…
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