BANGKOK- Thailand’s Prime Minister SretthaThavisin said on Tuesday the economy was in a critical stage and again urged the central bank to cut interest rates without waiting for a scheduled meeting.
The Bank of Thailand’s (BOT) next meeting is scheduled for April 10.
On X social media, Srettha said recent economic data indicated the Thai economy was “in a critical stage”.
On Monday, the state planning agency chief reinforced calls for a rate cut after Southeast Asia’s second-largest economy unexpectedly contracted in the final quarter of 2023 from the third and the government downgraded the 2024 growth outlook.
Srettha, who is also finance minister, has been at loggerheads with the central bank over the direction of monetary policy, repeatedly saying rate cuts will help an economy he describes as being in crisis as it confronts high household debt and China’s slowdown.
The central bank on Monday said weak fourth quarter GDP data was not a surprise and would be discussed at its next policy meeting. The BOT has previously said cutting interest rates would do little to help the economy unless structural issues are resolved.
