Pursuing an independent monetary policy is vital for the country’s economic stability as it prevents the misuse of monetary policy for short-term political goals while keeping inflation in check, the Economic Society of Thailand said in a statement. That sparked speculation that the ruling coalition may seek to amend the central bank law guaranteeing autonomy. He also maintains that the country’s economic problems are structural in nature and stimulus alone will not achieve much. “Politicians shouldn’t act to threaten or put pressure on the central bank independence in public,” Nipon Poapongsakorn, head of the group of economists and distinguished fellow at the Thailand Development Research Institute, said in the statement. The central bank has kept borrowing costs at a decade high 2.5% since September.

Source: Bangkok Post May 09, 2024 19:59 UTC