Just wants BoT to hear, it says
PUBLISHED: 5 May 2024 at 05: 19
The ruling Pheu Thai Party has denied interfering with the Bank of Thailand ( BoT )’s independence, despite criticism of the bank’s interest rate stance by leader Paetongtarn Shinawatra.
Pheu Thai head Paetongtarn Shinawatra spoke at an occasion held on Friday at Pheu Thai’s office about the BoT’s refusal to veer off from his ongoing pressure to lower interest rates.
The BoT’s independence from the government was criticized by Ms. Paetongtarn, who claimed that efforts to solve a number of pressing financial issues were being hampered by its democracy. She said that the Bank of Thailand ( BoT )’s independence from the government is a problem and a major obstacle to solving economic problems.
According to Ms. Paetongtarn, the nation has heavily relied on fiscal policy to stabilize its business, which has led to a high public debt and finances deficit. ” If the BoT does n’t understand and cooperate with the government]in its efforts to tackle economic problems], we ca n’t ]win ]”, she said. She claimed that since the country’s military coups, opportunities have been lost for nearly 20 years, but Pheu Thai may change its course before the next election.
In order to promote economic growth, the government has repeatedly urged the BoT to think about changing its interest charge plan and lowering the standard interest level. The public is being harmed and the current rate of 2.5 %, which is a 10-year high, may be to blame, according to Mr. Srettha, who previously claimed this.
Rinthipond Varinvatchararoj, a lieutenant Pheu Thai secretary- common and listing- MP, said the authorities was never trying to tamper with the BoT.
The Pheu Thai head merely desired the government to hear their point because it is crucial for maintaining consistency in macroeconomic and economic policies, according to Ms. Rinthipond. In theory, the central banks has democracy in pursuing its policy. But, it also has the responsibility to ensure its policy is in line with the government’s financial situation. She added that it should also pay attention to the governmental policy of the state.
Sanphet Boonyamanee, a Democrat MP for Songkhla, said the government may be happy a legislation is in place to ensure the BoT’s democracy. ” In theory, a central bank has maintain economic and financial stability. According to Mr. Sanphet, it needs to be kept from influencing any state and its freedom kept at bay.