REUTERSThe row between the government and the Bank of Thailand (BoT) over its "high" interest rate is all over the news. Prime Minister Srettha Thavisin goes so far as to say that a "high" interest rate hinders economic development. Let me add that the US Fed's policy interest rate is 5.25%-5.5%; the UK's policy interest rate is 5.25%; and the EU's policy interest rate is 4.5%. By the way, the "high" interest policy rate in Türkiye at that time was 24.0%, not 2.5%. The public and even governments do not understand the job of a central bank and, more importantly, how a central bank manages the monetary system.

Source: Bangkok Post May 09, 2024 00:42 UTC