BoT Gov Sethaput Rejects Prime Minister's Call For Emergency Rate Cut

In an exclusive interview with Nikkei Asia, Bank of Thailand Governor Sethaput Suthiwartnarueput pushed back against renewed pressure from Prime Minister Srettha Thavisin for the MPC to hold an emergency meeting and cut interest rates and rejected claims that the economy was in "crisis."

• Sethaput said that the central bank was "not dogmatic" about its interest rate but lowering it would not solve the current problems, as "it's not going to make Chinese tourists spend more, or cause Chinese firms to import more petrochemicals from Thailand, or cause the government to disperse the budget more rapidly, and those are the three main factors that underlie the slow growth."
• Srettha repeatedly called on the central bank to reduce borrowing costs amid headwind to growth, reiterating his stance on Monday, following the release of weak GDP data. He also repeatedly claimed that the economy was in "crisis," which warranted monetary policy response, raising questions about central bank independence.