Thailand’s central bank head says stronger growth needed

THAILAND’S economic recovery is uneven and stronger growth is needed, Bank of Thailand Governor Sethaput Suthiwartnarueput told a seminar on Tuesday.

Sethaput said Thailand’s potential economic growth rate of about 3 per cent was not high enough. The central bank has forecast economic growth of 2.6 per cent this year and 3 per cent next year. Last year’s expansion of 1.9 per cent lagged regional peers.

He also said the central bank would ensure inflation and living costs were not too high.

Despite government calls for policy easing, the BOT held its benchmark interest rate unchanged at 2.50 per cent for a fourth straight meeting last month. The next rate review is on Aug 21.

Last week, Sethaput said there was currently no need to cut rates but the central bank was ready to adjust if the outlook shifted. REUTERS