PM urges central bank to cut interest rate to boost economy

Finance Minister Pichai Chunhavajira tasked with coordinating with the Bank of Thailand on a range of fiscal measures

 

Prime Minister Paetongtarn Shinawatra has called on the Bank of Thailand to lower interest rates in a bid to ease financial pressures on the public, according to a summary of Tuesday's Cabinet meeting posted on her X social media account.

 

The request came during the government's first mobile cabinet meeting of 2025, held in the southern province of Songkhla. The Prime Minister also urged commercial banks to increase lending to businesses and individuals to boost economic liquidity.

 

The Monetary Policy Committee (MPC) is set to convene its first meeting of the year on February 26 when it will consider a potential reduction in the policy interest rate.
  

Addressing concerns about economic growth projections, the Prime Minister acknowledged the disparity between the National Economic and Social Development Council's forecast of 2.8% growth for 2025 and the government's more ambitious target of 3.5%.

 

However, she expressed confidence that her administration would achieve full economic momentum in the coming months through collaborative efforts with commercial banks and the central bank.

 

PM Paetongtarn highlighted that whilst the economy showed broad-based growth in the fourth quarter of 2024, private investment had contracted. She pointed to restricted credit access for SMEs, which comprise 75% of Thai businesses, as a key challenge.
  


"For nearly a decade, various private sector businesses have seen declining development, with some traditional industries struggling to secure funding," she noted.


 

The government is implementing various economic stimulus measures, including promoting tourism across both primary and secondary cities. The Prime Minister emphasised her administration's commitment to attracting foreign investment following recent overseas trips.

 

The mobile cabinet meeting took the Prime Minister and her ministers to Phatthalung and Songkhla provinces for a two-day visit. Cabinet members have been conducting extensive site visits throughout Southern Thailand to evaluate ongoing projects, meet with local communities, and monitor policy implementation.

(2025/02/19-00:00)