Prime Minister Paetongtarn Shinawatra is urging the
(BoT) to lower interest rates, saying a reduction will help ease the public's financial burden.
Speaking at "Matichon Leadership Forum 2025 Trust Thailand" on Wednesday, Ms Paetongtarn said that the Thai economy began showing signs of recovery towards the end of last year, with growth reaching 2.5% -- slightly higher than the 2% target set in 2023.
The recovery, she said, was driven by the government's economic stimulus measures that resulted in increased consumer spending and a rise in tourist arrivals following the expansion of the country's visa-free policy.
The government is expecting the economy to grow by 3% this year, spurred by higher private-sector investment, more consumer spending and the launch of several state investment projects.
However, Ms Paetongtarn admitted the country's economic growth figure is low compared to other countries in the region because of low investments in the industrial sector, as well as liquidity problems which stem from high interest rates.
She said commercial banks are cautious about lending money, resulting in a cash crunch that has particularly affected small- and medium-sized enterprises (SMEs), which make up about 75% of businesses in the country.
"The lack of access to funding is restricting our ability to invest and grow [Thai SMEs], which is starting to affect other industries," she said.
Commercial banks need to ensure there is an adequate supply of funding, and for them to be able to do so, the BoT should consider cutting interest rates, which will also help many households which are struggling with day-to-day expenses.
She said a rate cut won't have an adverse impact on the economy, as the country's inflation rate is low.
At the forum, she highlighted a number of Pheu Thai initiatives which are meant to provide debt relief to businesses and households, including the "Khun Su, Rao Chuay" scheme, which was designed to help those struggling with mortgage, car, and SME loan repayments.
The PM said various debt relief schemes rolled out by her government, as well as the previous administration under Srettha Thavisin, have helped 830,000 borrowers clear their debts.
The government is aiming to help another 260,000 individuals clear their debt accounts and has assigned the Finance Ministry to hold talks with the BoT to improve financial access for borrowers, she added.
According to Ms Paetongtarn, the Srettha administration's efforts to attract foreign investment have led to a 35% increase in investment, totalling about 1.14 trillion baht, or 5% of GDP.
She said her government is working to inject the funds back into the economy and introduce additional incentives for various industries.