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Investing.com -- The Bank of Thailand is focusing on driving long-term growth and believes that the existing policy interest rate of 2.0% is well-suited for the current economic situation, according to the bank’s Governor Sethaput Suthiwartnarueput.
His comments were made during a speech to the Japanese Chamber of Commerce earlier this week and were published on Friday.
Governor Sethaput outlined that the bank takes into account growth, inflation, and financial stability when deciding on interest rates. He affirmed the bank’s position that the 2% rate is robust and apt for a wide array of outcomes.
The bank does not plan to frequently adjust rates, he added.
The Bank of Thailand is predicting an economic growth rate slightly over 2.5% for this year. However, Sethaput acknowledged that a growth rate of 2.5% is not entirely satisfactory.
He emphasized the need for long-term solutions rather than merely short-term economic boosts. The bank’s focus is on strategies that will enhance the country’s economic growth in the long run.
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