Business sector at odds with Bank of Thailand's decision to hold key interest rate

The Bank of Thailand decided to keep the key interest rate at 2.50%, despite calls from the business sector to lower it to attract investors and aid economic recovery.

Business leaders expressed disappointment, citing the negative impact of high interest rates on investors and household debt according to a Nation report.

The business sector is disappointed with the Bank of Thailand’s decision to hold the key interest rate at 2.50% and believes it should be lowered to attract investors and aid in economic recovery.
Former president of the Federation of Thai Industries, Suphan Mongkolsuthee, emphasizes that high interest rates are negatively impacting both investors and grassroots groups, and advocates for a gradual reduction in the policy rate.
Jareeporn Jarukornsakul, chairman of WHA Corporation, anticipates a potential interest rate decrease by mid-2024 and plans to issue debentures in line with this trend, aiming to shorten their maturity date based on market conditions.

Some business leaders urged the central bank to gradually reduce the rate in line with inflation. Additionally, they predicted a potential rate decrease by mid-2024, considering factors such as the US Federal Reserve’s policy and GDP growth.