PM complains about Thai Central Bank’s decision to increase policy rate

[webfact]

Prime Minister Srettha Thavisin has expressed his disagreement with the decision of the Bank of Thailand to raise its policy rate, arguing that it is excessively high in comparison to the steadily falling inflation observed over the past several months.

 

The central bank’s Monetary Policy Committee unanimously voted to raise the policy rate to 2.50 last September and that rate was reconfirmed in November. The committee is due to meet again in February.

 

The prime minister said today that he holds regular consultations with the central bank about the policy rate and does not agree with the current rate adding, however, that the central bank governor is the person with the authority to alter the rate.

 

The prime minister also said that he has instructed the Commerce Ministry to ensure that the prices of farm products do not drop further, because that would adversely farmers.

 

File photo : PM Srettha Thavisin

 

Full story: Thai PBS 2024-01-09

 

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[flyingtlger]

[ChrisY1]

He could do with an assistant to help him dress in the morning....His shirt looks like it comes from JJ Market!

Edited January 9 by ChrisY1

[bamnutsak]

Well, he is his own self-appointed Minister of Finance.

 

He's had a running beef with BoT Chairman Dr. Sethaput Suthiwartnarueput, so this is not unexpected. I'd trust the BoT Chairman with the monetary policy before I'd trust some real estate tycoon whose net worth is affected by higher interest rates.

[StayinThailand2much]

Something doesn't quite add up... All the time news about rapidly shrinking inflation; supposedly close to zero now, while the central bank, at the same time, is still raising their policy rate. - Either the guys at the central bank are complete morons, or the inflation figures are, at best, flawed, and at worst, bogus. Looking at price rises at supermarkets recently tells me it must be the latter. (To name one example, salad dressing I used to buy is up more than 100% in one year.)

Edited January 9 by StayinThailand2much

[Robin]

 Nobody ever simulated an economy by raising interest rates. only strengthened the Baht, thus making imports cheaper and exports dearer,  Not helping the 'poor farmers' one bit, but making the submarines cheaper.

[RamblingOn]

3 hours ago, ChrisY1 said:

He could do with an assistant to help him dress in the morning....His shirt looks like it comes from JJ Market!

Most probably do!!

[bamnutsak]

1 hour ago, StayinThailand2much said:

All the time news about rapidly shrinking inflation

 

Mostly due to government-initiated/backed price controls and subsidies: fuel, electricity, public transport rides, food and other twenty or so I've forgotten.

 

The list covers essential items for daily use such as food; consumer products; farm products like fertilisers, pesticides, animal feed, tractors and rice harvesters; construction materials; paper; petroleum; and medicines.

 

Food products on the list include garlic, rice paddy, milled rice, corn, eggs, cassava, wheat flour, powdered/fresh milk, sugar, vegetable/animal oil and pork.

 

https://www.nationthailand.com/thailand/policies/40028904

[vivananahuahin]

a weakker baht will be more appropriate after 3 months deflation, deflation means a weakening economy, if continue first recession and after depression, bad time for Thai people.

[Guderian]

8 hours ago, webfact said:

The central bank’s Monetary Policy Committee unanimously voted to raise the policy rate to 2.50 last September and that rate was reconfirmed in November. The committee is due to meet again in February.

 

So now that it's January, this muppet PM is moaning about a BoT base rate increase that happened last September? Has it taken him four months to decide that he doesn't really agree with it, or has his Master quaffing Cristal in hospital only now given him permission to say something on the matter?

[TheAppletons]

3 minutes ago, Guderian said:

Has it taken him four months to decide that he doesn't really agree with it, or has his Master quaffing Cristal in hospital only now given him permission to say something on the matter?

 

  Neither.  He's signaling to the BoT Monetary Policy Committee that he would like them to lower rates when they meet next month.

[ukrules]

5 hours ago, StayinThailand2much said:

Either the guys at the central bank are complete morons, or the inflation figures are, at best, flawed, and at worst, bogus.

 

Those two aren't mutually exclusive, they could quite easily both be true