The Bank of Thailand (BoT) plans to implement a policy mix to tackle the uneven recovery in Southeast Asia’s second-largest economy, as stated by Governor Sethaput Suthiwartnarueput on Saturday.
Mr. Sethaput emphasized during a press conference that adjusting interest rates alone will not resolve economic challenges.
“We are prepared to make adjustments that suit the current situation,” he said. “If the economic outlook shifts, we are ready to modify policy rates accordingly.”
The BoT maintained its key interest rate for the fifth consecutive meeting on Wednesday, asserting that the current rate is neutral as it evaluates whether the new prime minister will alter economic stimulus strategies.
Prime Minister Paetongtarn Shinawatra was sworn in last week following the court-ordered dismissal of her predecessor, Srettha Thavisin. Ms. Paetongtarn has indicated that she plans to continue with existing policies while reviewing the government’s premier digital wallet cash-handout program worth 500 billion baht (approximately US$15 billion).
At the “Vision for Thailand” forum organized by Nation Group on Thursday, former Prime Minister Thaksin Shinawatra, the father of Ms. Paetongtarn, articulated the necessity of the handout plan to invigorate the sluggish economy.
“We need to stimulate the economy, as our country has faced slow growth for an extended period,” Thaksin remarked, highlighting the advantages of the handout scheme, which was a central campaign promise for his party in last year’s election.
Thailand’s economy grew by 2.3% in the April-June quarter compared to the prior year, showing an acceleration from the 1.6% growth recorded in the previous three months. However, analysts have expressed concerns over fiscal policy uncertainty that could affect future economic prospects.
