The government wants to see an interest rate cut at Wednesday's central bank policy review to help the economy as the current level is "too high", a deputy finance minister said on Tuesday.
The stock market's fall reflects the country's "not good" economy, driven by disappearing domestic purchasing power and insufficient fiscal and monetary policy coordination, Paopoom Rojanasakul told reporters.
"Fiscal and monetary policies have not coordinated as we expect, so there is no force to stimulate the economy," Mr Paopoom told reporters.
"Interest rates must be suitable for the economy," he added.
The government has said the central bank's key interest rate at 2.50% is too high and hurting the economy and it should be lowered. Prime Minister Srettha Thavisin previously said the current rate, a 10-year high, is hurting the public and may exacerbate the nation’s high household debt.
The central bank has so far resisted government calls for an interest rate cut and is expected to hold the key rate steady again on Wednesday.
Paopoom Rojanasakul, a deputy minister of finance. (Photo: Paopoom Rojanasakul's Facebook)
Mr Paopoom said the government would focus more on reviving the economy than resolving the stock market decline.
The main stock index has traded at its lowest level in three-and-a-half years, having fallen by 6.9% so far this year, becoming Asia's worst performing market.