Thailand’s Finance Minister Srettha Thavisin has expressed his disappointment in the Bank of Thailand’s decision to hold key interest rates steady, stating that a rate cut would have benefited the economy. Srettha has been advocating for a rate cut for months, as he believes the economy is in crisis and lagging behind regional peers. He emphasized that the central bank should consider the impact of its decisions on the people and the economy, without pressuring them to act.
Despite pressure from the government, the central bank stood firm in its decision to maintain rates at 2.50%, citing the current economic outlook and its potential for growth. The Bank of Thailand reached this decision by a vote of 5-2 by its monetary policy committee.
Thailand’s economy unexpectedly contracted by 0.6% in the final quarter of 2023, leading to a downward revision in the growth outlook for 2024 by the state planning agency. While the central bank deemed the current interest rate appropriate for the economic outlook, Srettha projects higher growth at 4% for
