Baht pits Bank of Thailand against government on rate cut

Washington

A PUBLIC rift between Thailand's central bank and the government on interest rates shows just how much of a dilemma the baht has become for the economy.

The Finance Ministry is pushing the Bank of Thailand (BOT) to cut interest rates to stimulate growth, in light of the strength of the currency and low inflation. That is clashing with the bank's aims of minimising financial instability and curbing household debt levels by keeping rates steady. With days to go before the next interest rate decision on Sept 27, economists are watching the dispute closely.