The most recent change in the policy rate was an increase of 25 basis points in September last year. The last time the central bank cut rates was in May 2020. The Pheu Thai government has been pressing the central bank for months to cut borrowing costs to help spur the underperforming Thai economy. Central bank governor Sethaput Suthiwartnarueput has maintained that rate decisions will be guided by the outlook for domestic economic and financial conditions and inflation. While Wednesday’s decision might placate critics of the BoT for a while, manoeuvring to influence the choice of a new central bank chairman remains a concern.
