The Bank of Thailand (BoT) countered government calls for monetary policy adjustments to stimulate the country’s slumping economy. Piti Disyatat, BoT Assistant Governor, stated today, January 15, that interest rates, already quite low compared to global standards, are not the solution to an economy being pummelled by external factors like dwindling global demand.
Piti emphasised that the country’s lacklustre economic recovery is a complex issue that cannot be easily resolved with superficial solutions. He argued that comprehensive treatments need to be tailored to address the root causes of the economic struggles.
This response follows Prime Minister Srettha Thavisin’s meeting with BoT officials last week, where he urged for a policy rate cut. The current rate sits at a decade-high 2.50%. Despite escalating it by 200 basis points since August 2022 to combat inflation, the…
