Thai central bank chief: rate cuts will not help economy

BANGKOK : Interest rate cuts will not help to boost the economy much, the governor of the Bank of Thailand said in a pre-recorded interview that aired late on Thursday.

Lowering rates may also not be good for household debt, said Sethaput Suthiwartnarueput, adding that there needed to be balance between growth and stability.

His comments come amid disagreement between the central bank and the government over interest rates and economic management.

Prime Minister Srettha Thavisin, who is also finance minister, has repeatedly said that interest rate cuts would help an economy he describes as being in crisis as it confronts high household debt and China’s slowdown.

“The difference of opinion is normal and we are working to find balance,” said Sethaput.

The central bank has resisted those demands so far, holding rates steady at 2.50 per cent, the highest in more than a decade.

It will next review monetary policy on April 10.

“We have to look at the big picture and the long run,” Sethaput said.