Thailand's central bank stresses independence as govt pushes for rate cut
Recasts
BANGKOK, Sept 20 (Reuters) -The Bank of Thailand's governor on Friday stressed the need for central bank independence in setting monetary policy amid a lengthy disagreement with the government over whether or not interest rates should be cut to support the economy.
While lower interest rates could trigger short-term growth, there was a trade-off with inflation and they could also lead to vulnerabilities such as debt accumulation and speculation, Bank of Thailand (BOT) Governor Sethaput Suthiwartnarueput tolda symposium.
Those risks would hold back long-term growth and could lead to crisis, he said, adding that central bank's independence was crucial for price stability.
His remarks come amid an extended stand-off between the government, which has repeatedly called for a rate cut to augment its fiscal stimulus, and the BOT which says rates are appropriate and structural issues are holding growth back.
Thailand's key interest rate has been at a decade-high of 2.50% for a year as the central bank has resisted the repeated calls for a cut. The next rate review is on Oct. 16.
Prime Minister Paetongtarn Shinawatra said earlier this year, before she became prime minister, that central bank independence was an obstacle to solving economic problems.
The government will launch its signature 450 billion baht ($13.6 billion) "digital wallet" programme later this month when it distributes 145 billion baht to vulnerable groups. The stimulus plan gives 10,000 baht each to up to 50 million Thais to be spent in their local communities.
The scheme has been criticised by economists, including two former central bank governors, as fiscally irresponsible.
The government rejects that, but has struggled to find sources of funding. It says the policy is necessary to energise the economy, which the central bank expects to grow just 2.6% this year, up from 1.9% in 2023.
Sources have told Reuters that the government plans to nominate former finance minister Kittiratt Na Ranong, a staunch critic of the BOT, as the next BOT board chairman.
($1 = 33.07 baht)
Reporting by Orathai Sriring, Kitiphong Thaichareon and Thanadech Staporncharnchai; writing by Chayut Setboonsarng; Editing by John Mair
免责声明: XM Group仅提供在线交易平台的执行服务和访问权限，并允许个人查看和/或使用网站或网站所提供的内容，但无意进行任何更改或扩展，也不会更改或扩展其服务和访问权限。所有访问和使用权限，将受下列条款与条例约束：(i) 条款与条例；(ii) 风险提示；以及(iii) 完整免责声明。请注意，网站所提供的所有讯息，仅限一般资讯用途。此外，XM所有在线交易平台的内容并不构成，也不能被用于任何未经授权的金融市场交易邀约和/或邀请。金融市场交易对于您的投资资本含有重大风险。
所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。
本网站上由XM和第三方供应商所提供的所有内容，包括意见、新闻、研究、分析、价格、其他资讯和第三方网站链接，皆保持不变，并作为一般市场评论所提供，而非投资性建议。所有在线交易平台所发布的资料，仅适用于教育/资讯类用途，不包含也不应被视为适用于金融、投资税或交易相关咨询和建议，或是交易价格纪录，或是任何金融商品或非应邀途径的金融相关优惠的交易邀约或邀请。请确保您已阅读并完全理解，XM非独立投资研究提示和风险提示相关资讯，更多详情请点击 这里。
