There is room for a rate cut in Thailand as inflation is low, Finance Minister Pichai Chunhavajira said on Tuesday as he reiterated his call for monetary and fiscal policy to work together to support the economy.
Mr Pichai also told the Sustainability Forum 2025: Synergizing for Driving Business that he wanted the baht to stablise at a weaker level to support the economy, which he said could grow 4% to 5% next year if policy was properly coordinated.
He expected growth this year would be between 2.6% and 2.8%.
The forum was organised by Krungthep Turakij.
Speaking to reporters later, Mr Pichai said he wanted a further rate cut but the decision would depend on the Monetary Policy Committee of the Bank of Thailand.
In October, the committee unexpectedly cut the key interest rate by a quarter point to 2.25%. The next policy review is on Dec 18.recovery.
A cartoon published in the Bangkok Post on May 18, 2024.
Meanwhile, BoT Governor Sethaput Suthiwartnarueput said Thailand must use a mix of policies in handling the economy and interest rates cannot address everything.
Monetary policy would be outlook-dependant, he added.
Mr Sethaput said the country must build buffers for economic resiliency and the central bank was not focusing on giving forward guidance.
He also said debt support measures would be announced next week.