High Interest Rates: the Burden on Thai Households

Thailand’s economy is currently grappling with a recession triggered by soaring household debt, as reported by the Deputy Finance Minister, Julapun Amornvivat, today. This intensified the call for the central bank to reduce interest rates.

Julapun also expressed the government’s commitment to the 500 billion baht distribution plan, which aims to allocate 10,000 baht per person to 50 million Thai citizens. The government hopes to minimise any delay in this plan’s implementation.

He further emphasised the need for a reduction in the country’s policy interest rate, currently at a 10-year high of 2.50%, during the central bank’s next policy review on February 7. This is seen as a crucial step to alleviate the burden of high borrowing costs. The rate should be lowered as high rates now are people’s burden. People can’t survive, he stated.

Prime Minister Srettha Thavisin…