Bangkok: The private sector is advocating for the Monetary Policy Committee (MPC) to reduce interest rates, aiming to alleviate the financial strain on small and medium-sized enterprises (SMEs).
According to Thai News Agency, Mr. Kriangkrai Thienukul, President of the Federation of Thai Industries (FTI), emphasized the necessity for the MPC to consider an appropriate policy interest rate. This adjustment is intended to decrease costs for entrepreneurs, particularly SMEs. Mr. Kriangkrai highlighted the strengthening of the baht and suggested that a flexible approach, akin to the yuan’s adaptability, should be adopted. Lowering interest rates would prevent exporters from facing disadvantages and help maintain competitive pressure.
Mr. Yanyong Thaicharoen, Chief Executive Officer of Economic and Sustainability Research at Siam Commercial Bank Economic Intelligence Center (SCB EIC), mentioned that market expectations are leaning towards the MPC considering two interest rate cuts this year. He outlined three key factors: the need to stimulate economic growth, projected between 1.5-2.0% this year; low inflation contributing to economic tension; and the stability of household debt, which is not expected to increase due to the conservative lending practices of financial institutions, thereby reducing consumer debt burdens.