New Thai finance minister has chance to improve strained central bank ties, says ex-Finance Minister

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New Thai finance minister has chance to improve strained central bank ties, says ex-Finance Minister

BENGALURU - Thailand's new finance minister has refrained from pressuring the central bank and has a chance to improve relations amid a longstanding disagreement on interest rates, former finance minister Thirachai Phuvanatnaranubala said on Tuesday.

For months, Srettha has been at odds with the central bank, which has refused to bow to his pressure to cut rates, currently at a more than decade-high of 2.50%. The next rate review is on June 12. Billionaire Thaksin has officially retired but remains a towering figure in Thai politics, with sway over the current government.

"We had amended the law to make it difficult for the government, for any government, to remove the central bank governor, unless there is a real, apparent, necessary cause."

 

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