BANGKOK :Bank of Thailand’s new governor Vitai Ratanakorn said on Friday that there is policy space on interest rates, and that he would work to bring inflation back within range while ensuring there was no political interference in the central bank’s operations.
In his first media briefing since taking office this month, Vitai said that he would also focus on solving the key challenges facing Thailand, including debt, which has been a persistent drag on Southeast Asia’s second largest economy.
His comments came days after the central bank unexpectedly held rates at 1.50 per cent, defying market expectations of another cut as the economy struggles with a strengthening baht, negative inflation and U.S. tariffs.
The BOT has cut rates four times in the past year.
Vitai reiterated that there is no deflation in the economy, while aiming to bring inflation back into range.
On Wednesday, the central bank cut its forecast for headline inflation this year to zero, from 0.5 per cent previously. The inflation rate has been negative for the past six months, well below the central bank’s target range of 1 per cent to 3 per cent.
The baht is strong because of external factors, Vitai said, adding that the central bank is closely monitoring capital flows so that the currency’s movements are not impacted.
