Thai central bank to use policy mix to tackle uneven economic recovery, governor says By Reuters

BANGKOK (Reuters) – Thailand’s central bank will use a mix of policies to tackle the uneven recovery in Southeast Asia’s second-largest economy, its governor said on Saturday.

Interest rates alone cannot solve economic problems, Bank of Thailand Governor Sethaput Suthiwartnarueput told a news conference.

“We are prepared to make appropriate adjustments to the situation,” he said. “If the outlook changes, then we are ready to adjust policy rates.”

The BOT left its key interest rate unchanged for a fifth straight meeting on Wednesday, saying the current level is neutral as it waits to see whether the country’s new prime minister will move on economic stimulus policies.

Prime Minister Paetongtarn Shinawatra was sworn in last week after her predecessor, Srettha Thavisin, was ousted by court order. Paetongtarn said it would continue but review the government’s flagship program to distribute digital wallet money worth 500 billion baht ($15 billion).

Thailand’s economy grew 2.3 percent in the April-June quarter from a year earlier, accelerating from 1.6 percent growth in the previous three months, but analysts said fiscal policy uncertainty clouded the outlook.