Thailand’s Finance Minister Pichai Chunhavajira made his latest pitch for the central bank to cut borrowing costs and make the baht “more competitive” to boost the country’s key exports and tourism sectors.
Mr Pichai also advocated for faster inflation and a weaker currency in his latest push on Monday for the Bank of Thailand to help revive Southeast Asia’s second-largest economy. The baht is the only currency within emerging Asia to advance against the dollar in the past three months.
“Exports rely on foreign exchange rate. Any measures on inflation or rates should ensure we won’t lose competitiveness against other currencies,” the finance official told a forum in Bangkok.
Gross domestic product probably expanded 2.6%-2.7% in 2024, he said ahead of data due Feb 17, with growth last quarter likely hitting 3.5%. While he expects GDP growth this year to quicken between 3%-3.5%, that’s still much slower than the target expansion pace of most of its neighbours especially Vietnam, whose premier is aiming for 8%.
“We want to see cheaper interest rates,” Mr Pichai said. Thai inflation, which averaged 0.4% in 2024, is “too low” compared to other countries and there’s a case for it to edge higher, he said.
The central bank, which last month kept the policy rate steady at 2.25% after a surprise quarter-point cut in October, is scheduled to review the rate on Feb 26.
“It’s the government’s job to manage fiscal policy and to talk to monetary policymakers and make things right,” the finance minister said. “We hope we will see things the same way more and more to get what we want.”
