Fiscal Policy Office chief states Bank of Thailand has sufficient ‘policy area’ as inflation is extremely low Two ladies leave a Krungthai Bank branch at a shopping shoppingcenter in Bang Na district of Bangkok on Monday. (Photo: Nittaya Nattayai) The Bank of Thailand no longer has any factor to refrain from lowering its policy interest rate, states a senior main of the Ministry of Finance. Central banks needto stay independent, with committees to figureout policy rates, stated Pornchai Thiraveja, director-general of the ministry’s Fiscal Policy Office (FPO). “Each nation runs like this, and when setting interest rate policies, they should examine the present and future financial scenarios and secret variables associated to inflation, such as work rates and development rates, which are vital elements,” he stated on Friday. “For example, justrecently both the US Federal Reserve and the Bank of England kept their interest rates thesame. The primary factor for keeping interest rates is that the inflation rates of both nations are still high and have not returned to the target variety.” Conversely, if inflation rates stay fairly low, a versatile interest rate and accommodative financial policy must be thoughtabout, he stated. Policymakers should thinkabout whether the rate level will impact financial and financial stability, stated Mr Pornchai. Thail
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