The Thai Chamber of Commerce supports the Bank of Thailand's decision to leave its policy rate unchanged at 2.25%, viewing it as appropriate given the economic recovery.
Sanan Angubolkul, chairman of the chamber, said both the chamber and the University of the Thai Chamber of Commerce considered the Monetary Policy Committee's (MPC) decision to keep the key interest rate at 2.25% to be a sensible move.
This rate is crucial for maintaining an environment that promotes economic growth, Mr Sanan said.
If the economy continues to grow and inflation remains at an appropriate level, there is potential for policymakers to consider lowering the policy rate in future meetings, he said.
The current rate is beneficial for local savings and policymakers may notice developing nations often face higher rates than developed countries, said Mr Sanan.
"Looking ahead, potential trade wars could pose economic challenges for Thailand's economy, emphasising the importance of keeping monetary policy tools available for strategic use in the future," he said.
The government plans to implement fiscal measures such as the Easy E-Receipt programme by the end of this year, a 10,000-baht cash handout to 4 million Thais in January, and the ongoing "You Fight, We Help" debt relief project.
Mr Sanan said these initiatives aim to bolster economic circulation and are projected to save around 80-100 billion baht in interest costs over the next 12 months.
Furthermore, a support programme for farmers, offering 1,000 baht per rai, has a price tag of 40 billion baht, while the nation is expected to welcome more than 36 million foreign visitors this year.
He said the export sector has been stronger than anticipated, while the rate cut in October is contributing positively to the economy.
These factors are expected to stimulate economic activity in the first quarter of 2025.
Given these factors, the policymakers believe there is no immediate need for additional rate cuts to spur growth, said Mr Sanan.
He said the weak baht also benefits exports and tourism.
A rate cut could lead to further depreciation of the baht, said Mr Sanan, while maintaining a higher interest rate is likely to attract foreign investment, providing an added reason for the MPC's recent decision.