By Kitiphong Thaichareon and Chayut Setboonsarng
Thailand's finance minister recently met with the central bank governor to address the issue of high household debt and the need for increased liquidity in the economy. The minister emphasized the importance of lowering interest rates to stimulate economic growth and provide easier access to credit for individuals.
The Bank of Thailand has maintained its key interest rates at 2.50% for the fifth consecutive meeting, despite calls for a rate cut from the government. The finance minister believes that monetary easing would improve credit access and help boost the economy.
Thailand's economy has been slow to recover from the pandemic, with high levels of household debt hindering progress. The country's household debt to GDP ratio is among the highest in Asia, standing at 89.6% at the end of the second quarter.
The finance ministry and central bank will further discuss the inflation rate target, with plans to review the target range of 1% to 3% annually. The government is aiming to align monetary and fiscal policies to stimulate economic growth.
Despite challenges posed by the strong currency, Thailand's exports are expected to perform well in the fourth quarter. Businesses are concerned about the baht's recent rally impacting export growth, but the finance minister remains optimistic about a 2% growth in exports this year.
In conclusion, Thailand's economy is facing challenges due to high household debt and slow recovery from the pandemic. The government is pushing for a rate cut to increase liquidity and stimulate economic growth. By addressing these issues, Thailand aims to boost exports and drive overall economic recovery.