The Monetary Policy Committee (MPC) voted 6 to 1 to maintain interest rates at 2.50% for its third consecutive times.
Earlier today, Thai Prime Minister Srettha Thavisin expressed his optimism for a potential interest rate reduction during the central bank’s policy review scheduled later in the day. However, the central bank is widely anticipated to maintain its benchmark interest rate at 2.5% during the review.
Srettha conveyed that his advocacy for a rate cut aligns with the public’s sentiments. He emphasized his expectations for a rate reduction while recognizing the sensitivity of discussing such matters to prevent any perception of interference.
Furthermore, Deputy Finance Minister Paopoom Rojanasakul echoed the call for a rate cut on Tuesday, citing the current interest rate level as excessively high and advocating for measures to support the economy.
Despite the central bank’s stance that the current interest rate is supportive of the economy, it remains open to adjusting its policy in response to shifts in the economic and inflationary landscape. The Bank of Thailand has conveyed the perspective that structural reforms aimed at enhancing productivity are more beneficial for the economy compared to rate cuts and fiscal stimulus.
