Bank of Thailand (BOT) governor Sethaput Suthiwartnarueput predicted on Monday that the Thai economy would expand by 3.6% this year, emphasizing the need for fiscal and monetary policy that prioritizes stability over economic stimulus.
In an interview with TV station JKN-CNBC, Sethaput stated, “The economy is resilient and able to withstand multiple shocks.” Last year, economic expansion was 2.6%.
Last month, the BOT raised interest rates by a quarter point, to 1.75%. Since August, the central bank has hiked rates five times by 25 basis points, for a total rise of 125 basis points.
In response to a question on proposals being offered by political parties in advance of the May elections, he stated that the economic stimulus wasn’t necessary at this time.
He argued that “Fiscal and monetary policy needs to be normalized and prioritize stability” and that “markets are ready to punish policies that don’t make sense, that upset stability.”
The central bank said on Friday that the country’s economy had improved further in February compared to the previous month, thanks to higher export values, stronger private spending, and better tourism.
Elections will be held in Thailand next month, and many political parties have made various promises, including the distribution of cash transfers and the increase of the minimum wage.
