BANGKOK- Thailand’s government wants to see an interest rate cut at Wednesday’s central bank policy review to help the economy as the current level is “too high”, a deputy finance minister said on Tuesday.
The stock market’s fall reflects the country’s “not good” economy, driven by disappearing domestic purchasing power and insufficient fiscal and monetary policy coordination, PaopoomRojanasakul told reporters.
“Fiscal and monetary policies have not coordinated as we expect, so there is no force to stimulate the economy,” he told reporters.
“Interest rates must be suitable for the economy,” he added.
The government has said the central bank’s key interest rate at 2.50 percent is too high and hurting the economy and it should be lowered.
The central bank has so far resisted government calls for an interest rate cut and is expected to hold the key rate steady again on Wednesday.
