Thailand's Central Bank Governor Talks Policy Mix for Uneven Economic Recovery
In a recent press conference, Bank of Thailand Governor Sethaput Suthiwartnarueput highlighted the need for a policy mix to address the uneven recovery in Southeast Asia's second-largest economy.
According to Suthiwartnarueput, relying solely on interest rate adjustments may not be sufficient to tackle economic challenges. The central bank is prepared to make necessary adjustments to its policies based on the evolving economic landscape.
The BOT recently maintained its key interest rate for the fifth consecutive meeting, citing a neutral stance while waiting to see if the new prime minister, Paetongtarn Shinawatra, will introduce economic stimulus measures. Shinawatra, who took office after her predecessor was dismissed, has hinted at reviewing the government's digital wallet cash-handout program worth 500 billion baht.
Thailand's economy showed a 2.3% growth in the April-June quarter, up from 1.6% in the previous quarter. However, analysts have raised concerns about fiscal policy uncertainty impacting the economic outlook.
In conclusion, the central bank's approach to using a policy mix, along with potential adjustments to interest rates, reflects its commitment to supporting Thailand's economic recovery. Investors and individuals should monitor these developments closely as they could have implications for financial markets and personal finances.