BANGKOK, 1 May 2015 – Finance Minister Sommai Phasee told the media that a decrease in benchmark interest rate would not help stimulate Thai exports though it could weaken the baht.
The comment was made after the Monetary Policy Committee decided to decrease the national benchmark rate by 0.25%. Mr. Sommai disclosed that the move may have helped depreciate the baht value, but it remains unclear if it would improve the export sector.
The minister explained that currently the global market is being flooded with supplies, resulting in cheaper goods and services worldwide, while negatively affecting the export sector.
In order to boost Thai exports, Minister Sommai suggested entrepreneurs improve their product quality, adding their value, and trying to match with the market demand. Furthermore, he said the government can provide assistance by offering loans, improving logistics sector, and promoting cost efficient methods.
