Thai central bank can work with finance ministry, governor says
THAILAND’S central bank is ready to work with the finance ministry despite having different views on certain issues, its governor said on Saturday (Aug 24).
Prime Minister Paetongtarn Shinawatra, sworn in last week, has called central bank independence an “obstacle” to economic growth.
Paetongtarn’s predecessor, Srettha Thavisin, was dismissed as prime minister by court order. Srettha, from the same political party as Paetongtarn, had repeatedly called for the central bank to cut interest rates to support growth.
“Our independence comes with accountability,” Bank of Thailand Governor Sethaput Suthiwartnarueput told a press conference, adding that the BOT was ready to work with anyone.
On Wednesday, the central bank left its key interest rate unchanged for a fifth straight meeting saying the current level was neutral as it waits to see whether Paetongtarn would change Thailand’s economic policies.
“We are ready to make adjustments that are appropriate to the situation,” Sethaput said. “If the outlook changes, then we are ready to adjust policy rates.”
Paetongtarn has said she would continue but review the government’s flagship digital wallet cash-handout programme worth 500 billion baht (S$19.2 billion).
Thailand’s economy grew 2.3 per cent in the April to June quarter from a year earlier, accelerating from the 1.6 per cent growth in the previous three months, but analysts said fiscal policy uncertainty clouded the outlook.
Sethaput said the outlook for the economy and inflation remained in line with forecasts. In June the central bank projected economic growth of 2.6 per cent this year after last year’s 1.9 per cent expansion, which lagged regional peers. REUTERS
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