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THAILAND: Finance Minister Doubles Down On Calls For Interest-Rate Cut

THAILAND
EM BulletHomepagemarkets-real-timeAPACPolitical RiskPolitical Risk BulletBulletGlobalEmerging Market NewsRegionThailand

The government has escalated its calls on the central bank to cut interest rates amid growing concerns that the recent baht rally threatens to weigh on exports and tourism, the two key engines of the Thai economy.

  • Ahead of his meeting with BoT Governor Sethaput, Finance Minister Pichai Chunhavajira said that "we have failed to meet the low end of the [inflation] target. Our inflation is below +1% Y/Y. This is something we need to look at."
  • Pichai also complained that high interest rates are working against the government's stimulus measures. He was speaking on the sidelines of the inauguration of the government's cash handout programme.
  • The Minister expressed concern about baht strength, noting that it is affecting exporters and should be discussed during his upcoming meeting with the BoT Governor.
  • Meanwhile, the Bangkok Post quoted BoT Assistant Governor Pimpan Charoenkwan as saying that the central bank stands ready to take action when currency movements are "unusual."
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The government has escalated its calls on the central bank to cut interest rates amid growing concerns that the recent baht rally threatens to weigh on exports and tourism, the two key engines of the Thai economy.

  • Ahead of his meeting with BoT Governor Sethaput, Finance Minister Pichai Chunhavajira said that "we have failed to meet the low end of the [inflation] target. Our inflation is below +1% Y/Y. This is something we need to look at."
  • Pichai also complained that high interest rates are working against the government's stimulus measures. He was speaking on the sidelines of the inauguration of the government's cash handout programme.
  • The Minister expressed concern about baht strength, noting that it is affecting exporters and should be discussed during his upcoming meeting with the BoT Governor.
  • Meanwhile, the Bangkok Post quoted BoT Assistant Governor Pimpan Charoenkwan as saying that the central bank stands ready to take action when currency movements are "unusual."