Room for central bank to cut rates: Thai PM

THAILAND’S Prime Minister Srettha Thavisin on Tuesday again called on the central bank to cut interest rates, saying a 25 basis-point rate cut would help people and not stoke inflation.

Inflation has been negative and below the lower end of the central bank’s target range, so even after reducing the key rate from 2.50 per cent to 2.25 per cent there would still be “a lot of room” for cuts, he told reporters.

“If there is a crisis or something happens, it can still be reduced a lot. Why don’t we start doing it today?” he said.

Despite lower inflation and government pressure on the Bank of Thailand (BOT) to ease monetary policy, it is expected to leave its policy rate unchanged at a more than record high of 2.50 per cent on Wednesday, a Reuters poll showed.

BOT Governor Sethaput Suthiwartnarueput recently told Reuters the current policy rate was “broadly neutral” and the economy was not in crisis. REUTERS