IMF Urges Thailand to Cut Interest Rates to Boost Economy

[webfact]

Picture courtesy: Bangkok Post 

 

The International Monetary Fund (IMF) has called on Thailand to further reduce its policy interest rate to bolster low inflation and alleviate debt pressures on borrowers.

 

This recommendation follows the Bank of Thailand's decision in October to cut rates, which the IMF endorses as a step towards enhancing inflation and easing debt burdens for consumers.

 

Thailand's household debt has surged to $486 billion, up from approximately $400 billion in early 2019. In light of this, Prime Minister Paetongtarn Shinawatra is advocating for a rate cut, especially after last year's economic growth fell short of expectations at 2.5%.

The Bank of Thailand's Monetary Policy Committee is scheduled to meet next Wednesday to discuss interest rates. Most economists surveyed by Bloomberg News anticipate that the central bank will maintain the current policy rate of 2.25%, which has remained steady since a surprise cut in October.

 

The IMF maintains its 2.9% GDP growth forecast for Thailand in 2025 but warns of potential risks from global trade tensions, commodity price volatility, and significant private sector debt, reported Bangkok Post.

 

-- 2025-02-21

 

 

[StayinThailand2much]

Two problems:

1. Will lead to weaker baht, so Thailand will lose face.

2. The upper 10,000 will have to pay more for overseas villas and holidays...

 

So, better let the economy shrink. 😆

[JoePai]

Thailand's household debt has surged to $486 billion

 

The problem is most of this "household debt" is via the Loan Sharks and so the base rate has nothing to do with it - as they make up their own interest rates 

[hotandsticky]

1 minute ago, JoePai said:

Thailand's household debt has surged to $486 billion

 

The problem is most of this "household debt" is via the Loan Sharks and so the base rate has nothing to do with it - as they make up their own interest rates 

 

 

They haven't got a clue what the true household debt figure is..................much of it is within the black economy.

[KireB]

1 minute ago, JoePai said:

Thailand's household debt has surged to $486 billion

 

The problem is most of this "household debt" is via the Loan Sharks and so the base rate has nothing to do with it - as they make up their own interest rates 

No, you can add the informal loan number (sharks) to this number.

[bkk6060]

I would never listen to anything the IMF says 

[ronnie50]

So that's 18% increase since 2019. 

The US household debt rose 13% over a slightly shorter period (2020-2024) sitting at an average of USD 105,000 debt per household in 2024.

I'm not suggesting you can compare US and Thailand household debt, but it's been rising significantly in many places. It's understandable since the worst pandemic years are included.

 

I wonder if the IMF gave Trump any advice..

[Celsius]

Really bad news for retirees 

 

The savings rate will be cut from a massive 1.25% to 1% 😧

[Purdey]

Make it cheaper to borrow and increase debt. Of course that will help. 

[Srikcir]

1 hour ago, Purdey said:

Make it cheaper to borrow and increase debt. Of course that will help. 

Not only increase debt but increase inflation.

"The International Monetary Fund (IMF) suggests Thailand could benefit from trimming its policy interest rate to boost inflation." https://finimize.com

Boosting inflation means even more debt, less buying power and weaker international trade competition. How is that helpful to Thailand? 

[hotchilli]

15 minutes ago, Srikcir said:

Not only increase debt but increase inflation.

"The International Monetary Fund (IMF) suggests Thailand could benefit from trimming its policy interest rate to boost inflation." https://finimize.com

Boosting inflation means even more debt, less buying power and weaker international trade competition. How is that helpful to Thailand? 

Exactly

[newbee2022]

18 hours ago, JoePai said:

Thailand's household debt has surged to $486 billion

 

The problem is most of this "household debt" is via the Loan Sharks and so the base rate has nothing to do with it - as they make up their own interest rates 

Assumptions only. Where is the proof???😳

[Muhendis]

18 hours ago, bkk6060 said:

I would never listen to anything the IMF says 

Is your real name Trump by any chance?

[JoePai]

2 hours ago, newbee2022 said:

Assumptions only. Where is the proof???😳

Leave your keyboard and get out more !

[newbee2022]

17 minutes ago, JoePai said:

Leave your keyboard and get out more !

What is that? Why this silly answer?

[JoePai]

10 minutes ago, newbee2022 said:

What is that? Why this silly answer?

Because you must live in a bubble – get out and see the amount of devastation caused by the borrowing from Loan Sharks – far more than the ‘official’ figures and far more worrying

[newbee2022]

2 minutes ago, JoePai said:

Because you must live in a bubble – get out and see the amount of devastation caused by the borrowing from Loan Sharks – far more than the ‘official’ figures and far more worrying

Ah, and this answer is meant as a proof?? Ridiculous . Stop trolling

[JoePai]

22 minutes ago, newbee2022 said:

Ah, and this answer is meant as a proof?? Ridiculous . Stop trolling

Trolling - now you're have in laugh, talk about the pot calling the kettle black !! - Let me guess, you live in Pattaya 

[newbee2022]

2 minutes ago, JoePai said:

Trolling - now you're have in laugh, talk about the pot calling the kettle black !! - Let me guess, you live in Pattaya 

Let me guess, you're in jail or in a mad house?🤣

And stop stalking END

[JoePai]

6 minutes ago, newbee2022 said:

Let me guess, you're in jail or in a mad house?🤣

And stop stalking END

Bye and good riddance

[Geir Rasch]

5 hours ago, Srikcir said:

Not only increase debt but increase inflation.

"The International Monetary Fund (IMF) suggests Thailand could benefit from trimming its policy interest rate to boost inflation." https://finimize.com

Boosting inflation means even more debt, less buying power and weaker international trade competition. How is that helpful to Thailand? 

To stimulate demand you need to hva some inflation. All countries want to have an inflation about 2%. High inflation is bad for economy, so is no inflation.

[Woke to Sounds]

IMF runs in the same circles as the WEF.

 

You gonna trust em?

[billd766]

21 hours ago, ronnie50 said:

So that's 18% increase since 2019. 

The US household debt rose 13% over a slightly shorter period (2020-2024) sitting at an average of USD 105,000 debt per household in 2024.

I'm not suggesting you can compare US and Thailand household debt, but it's been rising significantly in many places. It's understandable since the worst pandemic years are included.

 

I wonder if the IMF gave Trump any advice..

I don't expect that Trump would listen to any advice accept from the yes men he is surrounded with, let alone understand it.

[thecyclist]

A weaker Baht would be great. 

Should be around 40 to the $.