Thailand’s finance minister, Pichai Chunhavajira, met with the central bank governor to discuss key economic issues, including high household debt and the need for increased liquidity. Pichai pushed for an interest rate cut to stimulate the sluggish economy, improve credit access, and aid recovery. The central bank, however, has held its rates at a decade-high 2.50%, resisting government pressure for a cut. Thailand’s economy is struggling with high household debt (89.6% of GDP) and slow recovery post-pandemic. The finance ministry and the central bank plan further discussions on inflation targets, with expectations of inflation below 1% for 2024. Exports, despite challenges from a strong baht, are forecasted to grow by 2% this year.
