BANGKOK : There is room for a rate cut in Thailand as inflation is low, the finance minister said on Tuesday as he reiterated his call for monetary and fiscal policy to work together to support the economy.
Finance Minister Pichai Chunhavajira also told a business forum that he wanted the baht to stablise at a weaker level to support the economy, which he said could grow 4 per cent to 5 per cent next year if policy was properly coordinated.
He expected growth this year would be between 2.6 per cent and 2.8 per cent.Speaking to reporters later, Pichai said he wanted a further rate cut but the decision would depend on the rate-setting committee of the Bank of Thailand (BOT).
In October, the BOT’s monetary policy committee unexpectedly cut the key interest rate by a quarter point to 2.25 per cent. The next policy review is on Dec. 18.
The International Monetary Fund said last week a further rate reduction would support Thailand’s economic recovery.
