Business leaders dissatisfied with decision not to lower interest rate

The BOT’s Monetary Policy Committee (MPC) on Wednesday voted 5:2 in favour of holding the rate, which is almost at a decade high. The two committee members who voted against the motion proposed a 25 basis point decrease in the policy rate.

The central bank said the MPC believed that while headline inflation was projected to be lower than forecast, it was not a sign of low demand, as falling prices were concentrated in sectors like food and energy. Headline inflation excluding subsidies remained positive.

Following the BOT’s announcement, Suphan Mongkolsuthee, former president of the Federation of Thai Industries and CEO of Synnex Thailand, said he disagreed with the decision to hold the interest rate, adding that the economic growth suffered a slowdown every time the policy rate is adjusted up.

“High interest rates affect both investors and grassroots groups, who are…