Bank of Thailand Governor Sethaput Suthiwartnarueput has underscored the importance of central bank autonomy in formulating monetary policy amid persistent disputes with the government regarding interest rates.
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Bank of Thailand Governor Sethaput Suthiwartnarueput has underscored the importance of central bank autonomy in formulating monetary policy amid persistent disputes with the government regarding interest rates.
Key Takeways
BOT Governor Sethaput Suthiwartnarueput emphasizes central bank independence amid government’s push for interest rate cuts to spur growth. BOT maintains that such cuts risk long-term stability through increased inflation and debt.
The key interest rate remains at 2.50%, with the central bank attributing growth issues to structural factors. BOT warns against premature rate cuts, citing potential speculative risks and debt accumulation that could destabilize the economy.
The government plans to launch a 450 billion baht “digital wallet” scheme to distribute 145 billion baht to vulnerable groups, aiming to boost the economy. Economists express concerns about the…