PUBLISHED: 7 Does 2024 at 04: 29
Following a disagreement over the central bank’s position on interest rates, Prime Minister Srettha Thavisin objected to amending a law to limit the authority of the Bank of Thailand ( BoT ) governor.
Mr. Srettha said it had not crossed his mind when asked if the government would change the Bank of Thailand Act to restrain the BoT president’s authority.
” It is the Finance Ministry’s process to handle the matter. Never did I request that the BoT government retire. He always felt any pressure. But I do n’t know what will happen in the future. You must ask the Finance Minister]Pichai Chunhavajira ]”, Mr Srettha said on Monday.
” I do n’t want to talk to the BoT governor directly,” he said. He suggested that the State Enterprise Police Office of the Finance Ministry does work with the government to integrate with the BoT. I have acted on his suggestion”, the excellent minister said.
” I am not in discord with the BoT government. I am fighting against people’s hunger. High interest rates contribute to hunger. That’s all I may suggest. Politicians, MPs, government officials and the BoT all have good purposes for the land, but we approach problems differently”, Mr Srettha said.
He had previously stated that he would meet with the newly elected finance minister to explore ways to integrate and collaborate with the central bank more effectively.
Earlier, Mr Srettha stood by Pheu Thai head Paetongtarn Shinawatra, who recently criticised the main company’s stance on interest rates.
Ms. Paetongtarn criticized the BoT, which has been under constant strain to lower interest rates, at an event held last Friday at Pheu Thai’s office.
She said the laws, which prevents the Bank of Thailand from being governed by the state, is a issue and a big obstacle to financial 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.
In an effort to boost the economy, the government has repeatedly urged the BoT to think about changing its interest charge legislation and lowering the standard rate. The public is being harmed and the current rate of 2.5 %, which is a 10-year high, is further compounded by Mr. Srettha’s earlier assertions.