Srettha reiterates benefits of a rate cut after BOT refuses to budge

The BOT statement said the Thai economy was projected to grow at a higher rate this year compared to last year, with continued support from private consumption and tourism. Public expenditure is also anticipated to accelerate for the remainder of the year.

“Structural headwinds continue to weigh on export recovery,” the BOT said. “Inflation remains subdued from supply factors and government subsidies and is projected to gradually shift towards the target range by the end of 2024.”

The BOT said most MPC members believed the current policy rate was conducive to safeguarding macro-financial stability and that the effectiveness of monetary policy in resolving structural impediments was limited.

“As a result, most members voted to maintain the policy rate at this meeting but will monitor uncertainties of economic factors going forward. Two members voted to cut the policy rate by 0.25 percentage point due to structural challenges and to partly alleviate the debt-servicing burden of borrowers,” the statement read.