Bank of Thailand Governor Predicts 3.6% Growth in Economy, Prioritizes Stability Over Economic Stimulus
Governor Sethaput Suthiwartnarueput of the Bank of Thailand (BOT) announced that the country’s economy is expected to grow by 3.6% this year, with fiscal and monetary policies emphasizing stability over economic stimulus. Suthiwartnarueput stated that “The economy is resilient and is able to withstand multiple shocks,” after the country’s economy grew by 2.6% in 2021. The BOT has raised its key rate by 125 basis points since August, less aggressively than many of its regional peers.
Sethaput assured that the central bank has the tools to support the financial system in case of any issues. He added that economic stimulus is not necessary at the moment, prioritizing normalization of fiscal and monetary policies that would ensure market stability. He further stated that “Markets are ready to punish policies that don’t make sense, that upset stability.”
Many political parties have promised giveaways and handouts, such as cash transfers and raising the minimum wage, ahead of the May elections.
