The government has urged the Bank of Thailand (BoT) to reduce its policy rate

Chatrudee Theparat

The government has urged the Bank of Thailand (BoT) to reduce its policy rate.

Prime Minister Sreetha Thavisin disagreed the BoT’s Monetary Policy Committee (MPC) to increase its policy rate amid declining inflation rate for consecutive months.

“For my stand, I have disagreed to increase the policy rate of BoT’s MPC. However, the decision to increase or decrease the policy rate is an authority of BoT’s MPC. I have expressed my concern several times when we talked to the issue, ” he said.

BoT’s MPC will hold its meeting this February, 7.

Inflation rate in Thailand decreased to a contraction by 0.83% in December, it decreased for three consecutive months with a contraction by 0.44% in November 2023 from a contraction by 0.31 % in October.

Monetary Policy Committee on November 29, 2023 voted unanimously to maintain the policy rate at 2.50 %. The committee said the Thai economy overall continued to recover, despite some slowdowns in merchandise exports and related production.

MPC increased the policy rate for five times in 2023 from 0.25% in January 2023 to 2.50 % in September 2023 and maintained the policy rate at 2.50% in November 2023.

Mr Sreetha said the government has worried over a slowdown in farm prices. He authorized the commerce ministry to supervise farm prices which should not slow from current prices.