Policy Space Remains Despite Low Interest Rates
Addressing monetary policy concerns, Vitai acknowledged that Thailand’s policy rate of 1.5% is already amongst the lowest globally. However, he maintained that the central bank retains policy space to reduce rates further if necessary.
“Can we reduce it if needed? Yes, we can,” he stated, adding that any rate cuts would be accompanied by targeted measures to address specific issues affecting households and small and medium-sized enterprises.
Deflation Concerns Under Close Watch
The governor addressed growing concerns about deflation, noting that core inflation has remained at 0.9% whilst headline inflation has been…