Thai finance minister says financial access more worrying than interest rates
Pichai Chunhavajira also discussed economic restructuring with BOT governor Sethaput Suthiwartnarueput, and said the two would speak more often
THAILAND is more worried about financial access than interest rates, the Finance Minister said on Thursday (May 16) after meeting with the Bank of Thailand (BOT) governor in a bid to find a way to coordinate fiscal and monetary policies after a public spat.
The meeting between Finance Minister Pichai Chunhavajira and governor Sethaput Suthiwartnarueput ran for nearly two hours and comes amid a long-running public disagreement between the government and the central bank over interest rate settings.
The central bank will review its inflation rate target of 1 per cent to 3 per cent, and it was free to decide on key rates, Pichai said.
He also discussed economic restructuring with the BOT governor, and said the two would speak more often.
For months, Prime Minister Srettha Thavisin has pushed for an interest rate cut, saying it would help the economy. The central bank has not bowed to the pressure, holding its key rate at a more than decade-high of 2.50 per cent. The next rate review is on June 12.
Pichai, who was appointed finance minister last month, has downplayed the clash, saying last week there would be no attempt to replace the central bank’s governor or weaken its independence.
The government’s controversial policy of giving away US$13.84 billion to households to stimulate local spending and other fiscal policies were not discussed, Pichai said. REUTERS
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