BANGKOK : Thailand’s finance minister said on Monday he wanted a further interest rate cut to align with low inflation, speaking ahead of a policy review this week by the Bank of Thailand where economists expect no change to the key rate.
Pichai Chunhavajira said that while the central bank would make the decisions on rates, he had discussed the matter with its Governor Sethaput Suthiwartnarueput.
“From our perspective, if it can be reduced, it’s good. We want it to be in line with inflation,” Pichai said.
“We’ve already discussed with the governor many times… the governor is aware of our concerns and global trends,” he added.
Average headline inflation was just 0.32 per cent in the January-November period, well below the central bank’s target range of 1 per cent to 3 per cent.
All but two of the 30 economists in a Reuters poll forecast the central bank would keep its benchmark one-day repurchase rate at 2.25 per cent on Wednesday. The two predicted a 25 basis point cut.
At its previous meeting in October, the central bank unexpectedly cut the key rate by a quarter point but said it was not the start of an easing cycle.
Pichai also said the government was still planning measures to boost spending but was in no rush to introduce them.
“We’re looking at the New Year’s gift and various measures. But the gift does not have to be given on Dec. 31,” he told reporters.
