Thai finance minister seeks further rate cut

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BANGKOK : Thailand's finance minister said on Monday he wanted a further interest rate cut to align with low inflation, speaking ahead of a policy review this week by the Bank of Thailand where economists expect no change to the key rate.

FILE PHOTO: Thailand's Finance Minister and Deputy Prime Minister Pichai Chunhavajira looks on, on the day of the cabinet meeting at Thai Government House in Bangkok, Thailand, May 7, 2024. REUTERS/Chalinee Thirasupa/File PhotoBANGKOK : Thailand's finance minister said on Monday he wanted a further interest rate cut to align with low inflation, speaking ahead of a policy review this week by the Bank of Thailand where economists expect no change to the key rate.

"From our perspective, if it can be reduced, it's good. We want it to be in line with inflation," Pichai said. Average headline inflation was just 0.32 per cent in the January-November period, well below the central bank's target range of 1 per cent to 3 per cent. At its previous meeting in October, the central bank unexpectedly cut the key rate by a quarter point but said it was not the start of an easing cycle.

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