Amidst persistent governmental pressure to decrease borrowing costs and stimulate slow-paced growth, Thailand’s central bank (BoT) defended its current policy interest rate settings today, stating they are resilient and capable of tackling future economic risks.
The bank warned that although rate reductions could alleviate debt in the short term, they could also invite long-term hazards. By maintaining a steady rate of 2.50%, the BoT believes it retains policy optionality.
The BoT acknowledged the ongoing structural challenges faced by the country’s economy, while inflation remains subdued due to governmental interventions and supply-side influences. BoT Senior Director Pranee Sutthasri expressed that the recently approved fiscal budget would boost the economy through increased government expenditure.
Loan expansion signals that overall…
