Govt at odds with Bank of Thailand over raising ratesDeputy Prime Minister and Energy Minister Supattanapong Punmeechaow, centre, discusses soaring energy prices at the Ministry of Energy on March 11, 2022. Energy Minister Supattanapong Punmeechaow on Tuesday warned about risks to economic growth from higher rates. The government can ease the pressure on the central bank to raise rates by additional fiscal measures to cool inflation. The public calls for low rates by ministers also raise questions about central bank independence, according to Toru Nishihama, an economist at Dai-ichi Life Research Institute in Tokyo. “Striking a balance between the impact of higher rates and the risk of falling behind the curve is the central bank art,” Kiatnakin’s Pipat said.

Source: Bangkok Post June 16, 2022 02:09 UTC