Prime Minister Srettha Thavisin has refuted claims that he intends to amend the Bank of Thailand (BOT) Act to reduce the powers of the central bank’s governor amidst ongoing disagreements over interest rate policies. During a recent interaction, the premier clarified that any changes regarding the central bank’s governance would fall under the purview of the Finance Ministry, specifically dismissing any personal directives for the BOT governor to resign or pressures applied on him.
The prime minister noted that his primary concern was addressing poverty, which he believes is exacerbated by high-interest rates. He expressed a belief that while he and the BOT governor might have different approaches, both are committed to the nation’s welfare.
The statement emerges in response to critiques of the central bank’s autonomous approach to interest rates, viewed as a major barrier to tackling economic difficulties. The central government has openly advocated for the central bank to reassess its decision to uphold a benchmark interest rate of 2.5%, asserting that this policy exacerbates public financial strain and adds to the nation’s escalating household debt. (NNT)
