The Minister of Finance revealed that the Governor of the BOT will discuss next week, pointing out that high interest rates are not conducive to economic growth.

Minister of Finance BOT Governor next week, both policy interest rate and inflation framework. Monetary and fiscal policies must be correlated, high interest rates are not conducive to economic growth. Mr. Pichai Chunhuachir Minister of Finance He revealed that next week he will discuss with the Governor of the Bank of Thailand (BOT) at the Ministry of Finance, especially on the policy rate. People who want to use investment funds, including the continuous appreciation of the baht, which affects exports, but will have a positive impact on foreign investors. The main reason is that the US Federal Reserve (Fed) has cut interest rates and has signaled that it will continue to fall by 0.75% within this year, which will have an impact on the world, and money will flow from US bonds to developing countries, which Thailand itself is a target country. The Thai currency will be stronger. This will affect the competitiveness and affect the export sector. Meanwhile, the headline inflation rate in the first 8 months of 2024 was 0.15% per year, falling out of the lower range from the 1-3% inflation range. Therefore, all the information must be taken to see what the interest rate should be. The government has used the full budget framework during this period to grow the economy. The government is worried about public debt to GDP that is likely to increase, all of which must be related to monetary policy, the most important of which is the policy interest rate. If it is set at a high level, it will not be conducive to economic growth. "Therefore, I would like to invite you to make policies together, to sit down and discuss the same information, so that monetary policy is in line with fiscal policy. Now it's time to talk about the inflation framework, which will lead to the policy rate. This will lead to support for government policies, all of which will be consistent. To make Thailand overcome chronic economic problems for a long time." Mr. Pichai said. Mr. Phophoom Rojansakul Deputy Minister of Finance said that the consid eration of the appropriateness of the policy rate stems from four factors: inflation is currently not within the target range and is not likely to enter the range. In the near future. Factor 2 about the baht When comparing trading partners. We are in a stronger position than neighboring countries. Factor 3: Thailand's economic growth is low. It is necessary to step on the accelerator, which the government is currently implementing, especially the economic stimulus program. Fiscal policy is to step on the accelerator today, spending more than 30,000 million baht. Tomorrow, another 40,000 million baht and factor 4, the direction of monetary policy of various countries. In the world that affects Thailand's economic system, in what direction is it going? Many countries have gradually reduced policy interest rates, and Thailand's own policy is inevitable to adjust its policies in line with its trading partners.- Source: Thai News Agency